Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 12 August 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) heard Comp. App. (AT) (Ins) No. 1349 of 2026, an appeal filed by Naren Sheth (Appellant) against Punjab National Bank (Respondent). The core dispute concerns the bank's appropriation of funds deposited by the appellant in a no-lien account. These funds were deposited in pursuance or furtherance of a One-Time Settlement (OTS) agreement between the parties. The appellant is challenging the bank's legal entitlement to appropriate these specific funds. The respondent bank, represented by Dr. S.S. Hooda, acknowledged receiving notice but stated it needed to seek instructions on the central legal issue of whether the appropriation was justified.
Final Outcome
The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), issued a procedural order adjourning the matter. The tribunal granted Punjab National Bank 10 days from the order date (until approximately August 22, 2026) to file a short reply addressing the appropriation issue. The appellant is permitted to file a rejoinder within three days of receiving the bank's reply. The case has been listed for its next hearing on 01 September 2026.
Topics: Banking Dispute, NCLAT Proceeding, One-Time Settlement