Authority: National Company Law Appellate Tribunal Chennai Bench (Appellate Jurisdiction)
Order Date: 16 July 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) Chennai Bench heard Company Appeal (AT) (CH) (Ins) No. 197/2026 filed by A Mathiyalagan, suspended Director of Mediclone Biotech Pvt. Ltd., against the Biotechnology Industry Research Assistance Council (BIRAC) and another respondent. The appeal arises from insolvency proceedings involving Mediclone Biotech.
On 2 April 2026, the Appellate Tribunal had passed a conditional order requiring the appellant to partially remit financial liabilities related to the controversy. The appellant's senior counsel stated that this conditional order had been complied with. However, the respondents' counsel refuted this compliance, stating that in the absence of any contemplated procedure at their end, they could not act upon a One-Time Settlement (OTS) proposal. The reasons for this position were not on record.
Final Outcome
The Tribunal directed the respondents' counsel to complete instructions and file an affidavit explaining the reasons for non-acceptance of the OTS proposal. The affidavit must clarify whether BIRAC has a procedure for OTS proposals and what decision has been taken on the specific proposal. The interim order previously granted by the Appellate Tribunal will continue to operate until the next hearing. The matter has been listed for further hearing on 17 September 2026.
Topics: NCLAT Proceedings, Corporate Insolvency, One-Time Settlement