Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 24 August 2026
Case Overview
This appeal was filed by Tejas S. Khandhar & Others against an impugned order dated 20 January 2026 from the National Company Law Tribunal (NCLT). The NCLT had held the appellants liable for action under the Contempt of Courts Act, 1971 for non-payment of approximately Rs. 88 lakh. This non-payment was in contempt of a previous NCLT order dated 21 May 2024.
The background stems from NCLT's disposal of I.A No. 1462 of 2020, where the appellants were directed to:
- Make payment of usage/rental charges for the building they occupied
- Carry out valuation of the building structure and assets fitted therein (if owned by the Corporate Debtor, Renaissance Education Pvt. Ltd.)
- Pay the arrived value to the Corporate Debtor within 3 months
The NCLT had observed that the assets (building) were incapable of being detached from the land and might not fetch their potential value without land ownership vested in Respondent No. 1 (the liquidator).
In their defense, the appellants cited financial constraints preventing them from purchasing the Corporate Debtor's assets. They also argued that the entire building was mortgaged with a bank, and the valuation reports filed before NCLT did not specify the exact amount of rentals to be paid, making compliance with the 21 May 2024 order impossible.
Final Outcome
The NCLAT adjourned the matter to 26 October 2026, directing the Liquidator (Divyesh Nareshkumar Desai) to clarify whether any valuation exists regarding rental per month for the premises used by the appellants and for the specific period of usage. The bench comprising Justice Yogesh Khanna (The Officiating Chairperson), Barun Mitra (Member Technical), and Ajai Das Mehrotra (Member Technical) did not make any final determination on the contempt charges but allowed time for additional information gathering.
Topics: Contempt of Court, Insolvency Proceedings