Authority: National Company Law Tribunal, Division Bench, Kolkata, Court-I

Order Date: 12 June 2026

Case Overview

This contempt petition was filed by Vaibhav Khandelwal, the Liquidator of Mohan Motor Dealers Private Limited, against five respondents for willful disobedience of the Tribunal's order dated 30 January 2024. The original order was passed in IA (IB) No. 360/KB/2022, which was an avoidance application filed under sections 43, 45 and 66 of the Insolvency and Bankruptcy Code, 2016. The respondents include Gayetri Singh, Rohit Kumar Singh, Pradip Kumar Bajaj, Anju Bajaj, and Paragon Finance.

The Tribunal found that despite having knowledge of the January 2024 order through demand notices, letters, and newspaper publications, the respondents deliberately failed to comply with the payment directives. The liquidator also noted that four appeals had been filed with the NCLAT but none had been listed for hearing as of 19 May 2024.

The January 2024 order had directed specific payments from each respondent:

  • Respondents 1 and 2 (directors of certain companies): ₹4,68,75,262
  • Respondents 3 and 4 (directors of another company): ₹2,56,81,497
  • Respondent 3 separately: ₹1,02,58,637
  • Respondent 5: ₹13,22,427

Final Outcome

The Tribunal held all respondents guilty of contempt for willful violation of the January 2024 order. The court issued the following directives:

1. All respondents must comply with the payment directions immediately and pay their respective amounts to the liquidation estate within 7 days of this order being uploaded

2. Upon failure to pay within 7 days, all personal properties of each liable respondent shall be attached for 3 months, and may subsequently be sold by the liquidator to recover their respective liabilities

3. Each respondent must show cause within 7 days why they should not be fined and/or sentenced to imprisonment for violating the order

4. Failure to show cause will result in a fine of ₹200,000 for each respondent

5. Non-payment of the fine will result in detention in civil prison for 6 months

6. All respondents must bear the costs and advocate fees incurred by the liquidator in this contempt application

The contempt petition was disposed of with these directions, and the registry was instructed to send email copies of the order to all parties and their counsel.

Topics: Contempt of Court, Insolvency Proceedings