Supreme Court Order Details

The Hon'ble Supreme Court of India passed its final order on 14th May, 2026 (uploaded on court portal on 30th May, 2026) in Civil Appeal Nos. 4266-4267/2026 and Civil Appeal No. 6684/2026 in the matter of Cosmic CRF Limited vs. Myotic Trading Private Limited & Ors.

Court Decision

The Supreme Court allowed the appeals filed by Cosmic CRF Limited and:

  • Set aside the two impugned orders passed by the NCLAT dated 25th July, 2025 and 12th March, 2026
  • Set aside all consequential actions taken pursuant to NCLAT orders, including publication of fresh Form-G
  • Declared Cosmic CRF Limited eligible to participate in the CIRP of Corporate Debtor Amzen Transportation Industries Private Limited
  • Directed that Cosmic CRF's Resolution Plan, as considered by the CoC, shall be processed further in accordance with law

Legal Findings

The Supreme Court categorically held that:

  • Cosmic CRF Limited and its connected persons do not suffer from any disqualification or ineligibility under Sections 29A(c), 29A(j), or any other provisions of Section 29A of the Insolvency and Bankruptcy Code, 2016
  • The NCLAT erred in holding Cosmic CRF ineligible under Section 29A(c) and 29A(j)
  • Eligibility under Section 29A must be determined on the date of submission of resolution plan (28th June, 2024)
  • There were no dues in praesenti as CFAL stood fully resolved on 11th October, 2018

Background Proceedings

The case involved a corporate insolvency resolution proceeding (CIRP) relating to Corporate Debtor Amzen Transportation Industries Pvt. Ltd. where:

  • Cosmic CRF was a Prospective Resolution Applicant
  • Myotic Trading Pvt. Ltd. (with Fortune Global Solution Pte Ltd. consortium) was a rival applicant
  • Committee of Creditors (CoC) consisted of Prudent ARC Ltd. (41.12% voting), UCO Bank (53.31% voting), and WLD Investments Pvt. Ltd. (5.57% voting)
  • CoC had unanimously declared Cosmic CRF eligible under Section 29A with 100% voting on 6th March, 2025

Key Legal Principles Established

  • Section 29A(c) ineligibility must be reckoned on the date of submission of resolution plan (following ArcelorMittal India judgment)
  • Mere familial relationship doesn't render a person ineligible without actual involvement (following Swiss Ribbons judgment)
  • Once a resolution plan is approved, all parties are bound by its terms and outstanding dues stand extinguished
  • The first proviso to Section 29A(c) regarding payment of overdue amounts doesn't apply when NPA accounts are already resolved

Case Timeline Highlights

  • 21.12.2021: Cosmic CRF incorporated
  • 04.05.2022: Corporate Debtor admitted into CIRP
  • 28.06.2024: Cosmic CRF submitted Resolution Plan
  • 06.03.2025: CoC declared Cosmic CRF eligible with 100% voting
  • 25.07.2025: NCLAT first impugned order holding Cosmic CRF ineligible
  • 12.03.2026: NCLAT second impugned order dismissing recall application
  • 14.05.2026: Supreme Court final order allowing Cosmic CRF's appeal

Financial Impact

The disclosure does not quantify specific financial impact, but the ruling enables Cosmic CRF to proceed with its resolution plan for Amzen Transportation Industries Private Limited, which could have material financial implications depending on the plan value and implementation.