Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 10 August 2026
Case Overview
The Maharashtra Industrial Development Corporation (MIDC) has filed an appeal (Company Appeal (AT) (Insolvency) No. 1334 of 2026) against an impugned order dated 11 May 2026 passed by the National Company Law Tribunal, Mumbai Bench-I in C. P. No.1318 of 2022. The appeal concerns the corporate insolvency resolution process (CIRP) of Morarjee Textiles Ltd., with Ravi Sethia serving as the Resolution Professional.
MIDC contends that paragraph 26 of the plan approval order is contrary to Regulation 32 of the CIRP Regulation, 2016. The appellant specifically challenges the complete waiver of "all statutory dues, charges, fees, fines, penalties, etc. pre, during and upto the completion of plan payable to the Appellant." This waiver was granted despite a letter dated 19 March 2025 from the Resolution Professional which stated that all costs for supply of water during the pendency of the CIRP would be treated as CIRP cost. MIDC argues that this waiver is illegal.
Final Outcome
The NCLAT issued notice in both the delay condonation application (I.A. No.5209 of 2026) and the main appeal. Respondents are required to file their reply within three weeks from 10 August 2026, with rejoinder to be filed within two weeks thereafter. The appeal has been listed for hearing on 30 September 2026. The tribunal ordered that any implementation of the resolution plan shall abide by the outcome of this appeal, effectively staying the plan's implementation pending the appeal's resolution.
Topics: Insolvency Proceedings, Statutory Dues Waiver