Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: 08 July 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard two connected appeals (Company Appeal (AT) (Insolvency) No. 1051 of 2026 and No. 1052 of 2026) filed by JUD Cements Ltd and JSB Cement LLP (Appellants/Corporate Debtors) against Satnam Global Infraprojects Ltd (Respondent/Financial Creditor). The appeals challenged the NCLT's order dismissing the appellants' application (I.A. No. 57 of 2025) which sought dismissal of the respondent's petition under Section 7 of the Insolvency & Bankruptcy Code, 2016 (IBC).

The dispute centers on a tripartite Settlement Agreement dated 07 May 2025 between the two appellants and the respondent. This agreement provided a method for repayment of outstanding debts, requiring the appellants to pay Rs. 50 lakhs every month. Key clauses included Clause 6, which stated that outstanding amounts for Jaintia Coke Private Limited were fully settled; Clause 7, which stipulated that immediately after payment of the first installment of Rs. 50,00,000 in May 2025, the respondent shall withdraw all cases and complaints filed against the appellants, including the NCLT-Guwahati Bench case and complaint before the Economic Offence Wing-New Delhi; and Clause 8, which stated that the parties agree to execute a detailed agreement for final closure of all disputes.

The appellants contended they paid the first installment and, in terms of Clause 7, the respondent was obligated to withdraw the Section 7 petition. As the respondent did not do so, the appellants filed for dismissal of the petition. The Adjudicating Authority (NCLT) dismissed this application, relying on Clause 8 to conclude the settlement was provisional, not final. The appellants argued before NCLAT that Clause 8 should be read conjunctively with Clauses 6 and 7, and continuing the Section 7 petition constituted an abuse of process. The respondent highlighted the appellants' conduct, noting no payments had been made since February 2026.

Final Outcome

The NCLAT bench comprising Justice N. Seshasayee (Member-Judicial) and Barun Mitra (Member-Technical) did not issue a final ruling on the merits of the appeal. Instead, it adjourned the case and listed the appeals 'For Admission (New Fresh Cases)' on 07 August 2026. The Tribunal directed the appellants' counsel, Mr. Joy Saha, to obtain instructions regarding when the appellants can pay all installments that have fallen due to the respondent. The outcome of the appeal remains pending until the next hearing.

Topics: Insolvency Proceedings, Settlement Agreement, NCLAT Appeal