Authority: National Company Law Appellate Tribunal, Chennai Bench

Order Date: 05 August 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) at Chennai heard five consolidated appeals (CA (AT) (CH) (Ins) Nos. 649/2025, 650/2025, 659/2025, 71/2026, and 07/2026) related to the corporate insolvency resolution process of Manjeera Constructions Ltd.

The appellants across these cases are various individuals including Venna Parvata Vardhani, Venkatesa Perumallu Pasumarthy, Hari Kumar Polavarapu, B. Anand Reddy (and 53 others), and Venna Venkateswarlu (and 7 others). The common respondent in all appeals is Birendra Kumar Agarwal, the Resolution Professional (RP) of Manjeera Constructions Ltd.

The primary issue in appeals 649/2025, 650/2025, 659/2025, and 71/2026 concerns the classification of the appellants as "other creditors" by the Resolution Professional. The appellants contend they should instead be classified as "home buyer creditors," which would affect their rights and treatment in the resolution process.

In appeal 07/2026, the challenge is directed against the approval of the resolution plan itself. The Tribunal noted that this particular matter has previously been successfully challenged before the NCLAT, and both the Successful Resolution Applicant (SRA) and the Resolution Professional have appealed this decision to the Supreme Court. The Supreme Court has granted a stay on the operation of the NCLAT's judgment, and this appeal is scheduled for hearing on 30 October 2026.

During the proceedings, the appellant's counsel, Mr. Krishna Grandhi, informed the Tribunal that in appeal 71/2026, 7 out of the 54 appellants have instructed him to withdraw from the appeal. He sought time to file the necessary application or memo for this withdrawal. Counsel for the SRA, Mr. Aishvary Vikram, indicated that separate applications for impleading the SRA in these appeals have been filed and are pending with the registry.

The Tribunal also noted procedural requirements, directing that the SRA must be impleaded in all appeals and acknowledging that certified copies of the impugned orders had been e-filed in most cases, with a request for additional time to file hard copies in appeal 659/2025.

Final Outcome

The NCLAT adjourned all five connected appeals and listed them for next hearing on 04 November 2024. The adjournment allows for: (1) the impleadment of the Successful Resolution Applicant (SRA) in all appeals; (2) the outcome of the related Supreme Court hearing scheduled for 30 October 2026 regarding the resolution plan challenge; and (3) the completion of necessary procedural filings, including the withdrawal application for some appellants and submission of certified copies.

The practical consequence is that the classification of the appellants' claims and the challenge to the resolution plan remain unresolved pending these procedural steps and the Supreme Court's decision.

Topics: Insolvency Proceedings, Creditor Classification, Resolution Plan Challenge