Authority: National Company Law Tribunal, New Delhi Court-VI

Order Date: 13 July 2026

Case Overview

The National Company Law Tribunal (NCLT) heard matters concerning M/s. Mittal Lumber Pvt. Ltd. under Section 10 of the Insolvency and Bankruptcy Code, 2016. The bench comprised Hon'ble Member (Judicial) Justice Jyotsna Sharma and Hon'ble Member (Technical) Ms. Anu Jagmohan Singh. The petitioner was represented by advocates Mr. Arpit Dwivedi and Mr. Raghav Dembla.

The tribunal was reviewing an additional affidavit filed by the liquidator in compliance with its previous order dated April 22, 2026. The affidavit revealed that no separate Corporate Insolvency Resolution Process (CIRP) account or liquidation account had been maintained for the corporate debtor. Specifically, paragraphs 5 and 6 of the affidavit stated that during the first meeting of the Stakeholders Consultation Committee (SCC) on October 1, 2024, the liquidator informed the SCC about Regulation 2A of the IBBI (Liquidation Process) Regulations, 2016, which requires liquidation expenses to be deposited in a designated liquidation account. However, since there were no assets of the Corporate Debtor and the SCC intended to file for early dissolution under Regulation 14 of the Liquidation Regulations, it was mutually decided that opening a separate liquidation account would not be feasible. The affidavit further disclosed that even during the CIRP period, CIRP costs were disbursed by the Committee of Creditors (CoC) directly into the personal account of the Resolution Professional, and similarly, liquidation costs were disbursed directly into the personal account of the Liquidator.

The tribunal expressed serious concern over this conduct, stating that such actions "not only violate the law but also faith of the concerned stakeholders."

Final Outcome

The NCLT directed the applicant (liquidator) to file another additional affidavit within two weeks to explain this conduct. The matter has been adjourned and listed for next hearing on October 5, 2026.

Topics: Insolvency Process, Regulatory Compliance