Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: 30.10.2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard two connected appeals: Comp. App. (AT) (Ins) No. 1888 of 2026 (Jaspal Singh & Ors. vs. Respondents) and Comp. App. (AT) (Ins) No. 2083 of 2026 (Canara Bank vs. Narinder Kaur & Ors.). The appellant, Canara Bank, represented by Senior Advocate Mr. Gopal Jain, challenged an order from the Adjudicating Authority that excluded certain assets from the Corporate Insolvency Resolution Process (CIRP) of the Corporate Debtor (CD).

The Bank argued that it had initiated auction proceedings under the SARFAESI Act, issuing an auction notice on 27.11.2025 for the subject property. The auction was held on 19.12.2025, and the sale was confirmed after the auction purchaser paid 25% of the total consideration. Subsequently, on 29.12.2025, the respondents filed a Section 94 application, which remains pending. The Bank contended that after the sale confirmation, there was no legal basis for the Adjudicating Authority to exclude these assets from the CIRP.

The respondents, represented by Mr. Aalok Jagga, countered that Canara Bank itself had filed the Section 7 application under the Insolvency and Bankruptcy Code (IBC) in 2023, which was admitted by the Adjudicating Authority on 20.02.2026, initiating CIRP against the CD. In the third Committee of Creditors (CoC) meeting held on 15.05.2026, which was attended by the Bank, it was resolved to consolidate all assets of the CD, including the subject properties, for value maximization. The respondents argued that by consenting to this resolution, the Bank lacked the locus standi to file the present appeals.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), declined to grant any interim directions at this stage but found that the matter requires consideration. The tribunal issued notices in both appeals and the stay application. Respondents 1 and 2 in CA (AT) (Ins) No. 1888 of 2026 and Respondent 1 in CA (AT) (Ins) No. 2083 of 2026, represented by Mr. Aalok Jagga, were granted two weeks to file replies. The appellant was given one week thereafter to file a rejoinder. Notices were also issued to the Interim Resolution Professional (IRP) in both appeals. The matter was listed for further hearing on 11.12.2026 under the caption 'For Admission (After Notice)'.

Topics: Insolvency Proceedings, SARFAESI Auction, Asset Consolidation