Authority: National Company Law Tribunal, Division Bench, Court - 1, Ahmedabad
Order Date: 29 June 2026
Case Overview
The National Company Law Tribunal (NCLT), Ahmedabad heard a restoration application (Rest.App/11(AHM)2026) filed by Chemical Corp Private Limited (Applicant/Operational Creditor) under Section 60(5) of the Insolvency and Bankruptcy Code, 2016 (IBC) read with Rule 11 of the NCLT Rules, 2016. The application sought to restore the main insolvency petition, C.P. (IB) No. 78 of 2026, which was filed by Chemical Corp against Shiva Dyestuff Private Limited (Respondent/Corporate Debtor).
The background reveals that C.P. (IB) No. 78 of 2026 was previously dismissed as infructuous by an NCLT order dated 24 March 2026. This dismissal occurred because another insolvency petition against the same Corporate Debtor, C.P. (IB) No. 351 of 2025, had been admitted, initiating a Corporate Insolvency Resolution Process (CIRP). The dismissal order had granted liberty to the Applicant to seek restoration of its petition if the admission order in C.P. (IB) No. 351 of 2025 was later recalled or set aside.
The Applicant's counsel submitted that the CIRP in C.P. (IB) No. 351 of 2025 was subsequently terminated. This termination was effected vide an order dated 27 April 2026 passed in I.A. No. 536 of 2026 in that petition, pursuant to a withdrawal under Section 12A of the IBC. With the CIRP terminated, the Applicant prayed for the restoration of its original petition.
Final Outcome
The NCLT Bench, comprising Member (Technical) Mr. Sanjeev Sharma and Member (Judicial) Mr. Shammi Khan, allowed the restoration application. The tribunal held that since the CIRP in the competing petition had been terminated, the grounds for the original dismissal no longer existed. Consequently, C.P. (IB) No. 78 of 2026 was restored to its original file and number.
The tribunal issued further procedural directions for the restored petition. Notice was ordered to be issued to the Respondent/Corporate Debtor (Shiva Dyestuff), returnable on the next date of hearing, 07 July 2026. The Applicant/Operational Creditor (Chemical Corp) was directed to collect the notice from the registry and serve it upon the Respondent via Registered AD Post/Speed Post/Dasti and on its registered e-mail ID available on the MCA portal. An affidavit of service must be filed before the next hearing. The Respondent was given 7 days from the date of receipt of notice to file its reply, with a provision for a rejoinder thereafter.
The Registry was directed to list C.P.(IB)/78(AHM)2026 before the Bench for further proceedings on 07 July 2026. The restoration application itself stands disposed of.
Topics: Insolvency Proceeding, NCLT Order, Debt Recovery