Authority: National Company Law Appellate Tribunal, Chennai Bench

Order Date: 30 September 2026

Case Overview

This appeal was filed by Bindawala Banijya Ltd, the successful resolution applicant, challenging an order passed by the Adjudicating Authority (NCLT) in IA(IBC)/291/2026 dated 28 July 2026. The Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor, Circar Jute Mills Pvt Ltd, had been successfully concluded with the approval of the appellant's resolution plan by the Adjudicating Authority.

The resolution plan has a total value of approximately ₹21.91 crores, structured with an upfront cash payment component and a debt component of ₹15,03,75,000 payable over a period of 5 years. The dispute centers on the interpretation of Clauses 10.5(d) and 12.2 of the resolution plan, which define what constitutes complete implementation. The appellant contended that it had paid the required cash component and issued the debt instruments, thus completing implementation as per these clauses. However, the Adjudicating Authority interpreted the requirements differently, suggesting that the debt obligation created by the instruments needed to be discharged, leading to a delay in recording the plan's implementation.

The NCLAT found that the impugned order failed to discuss the import and impact of Clauses 10.5(d) and 12.2 of the resolution plan in arriving at its conclusion. The appellate tribunal also condoned a 14-day delay in filing the appeal, accepting the reasons provided in the affidavit supporting the delay condonation application (IA No. 1408/2026).

Final Outcome

The NCLAT set aside the impugned order and remanded the matter back to the Adjudicating Authority with specific directions to consider the implications of Clauses 10.5(d) and 12.2 of the resolution plan. The Adjudicating Authority must pass appropriate orders within one month from the date this order is uploaded on the NCLAT website. The practical consequence is that the implementation recording process returns to the NCLT for reconsideration based on proper interpretation of the plan's specific clauses.

Topics: Insolvency Resolution, NCLAT Jurisdiction, Plan Implementation