Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: July 1, 2026
Case Overview
This appeal before the NCLAT arises from proceedings under the Insolvency and Bankruptcy Code, 2016 involving Deepak Modi (Appellant and suspended director of the corporate debtor) and Shalfeyo Industries Pvt. Ltd. (Operational Creditor/Respondent). The appellant contends that despite his readiness to satisfy the operational creditor's entire claim of ₹17 lakhs (including interest) in full and final payment, the creditor appears more interested in prolonging the Corporate Insolvency Resolution Process (CIRP) rather than accepting payment. The appellant characterizes this as a misuse of the insolvency process for recovery purposes, contrary to the Code's objective of revival/resolution. The appellant has also expressed readiness to pay CIRP costs as determined by the Adjudicating Authority. The Resolution Professional has filed IA No. 160 of 2023 for determination of CIRP costs, which remains pending.
Final Outcome
The Tribunal noted that the operational creditor's counsel did not object to receiving ₹17 lakhs as full and final settlement of its claim including interest, but raised procedural concerns regarding submission of Form FA and bank guarantee. The NCLAT directed the appellant's counsel to file an appropriate affidavit supporting the settlement offer submissions made before the Tribunal. The matter is listed for next hearing on July 31, 2026, at 2:00 PM, with any interim orders remaining operative until then.
Topics: Insolvency Settlement, Corporate Debtor Resolution, NCLAT Proceedings