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

Order Date: 28 September 2026

Case Overview

This order pertains to two connected appeals: Company Appeal (AT) (Ins.) No. 1777 of 2026 and Company Appeal (AT) (Ins.) No. 1778 of 2026. The appellant, Chetan Doshi, a shareholder holding 25.25% in the corporate debtor CMP Euro Technoplast Pvt. Ltd., is appealing orders from the Adjudicating Authority (NCLT). The appellant alleges that a collusive application was moved under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) to initiate Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The appellant contends this was done in collusion between the financial creditor and the corporate debtor itself, to the detriment of his shareholding. This objection was previously raised before the Adjudicating Authority in a proceeding under Section 65 of the IBC (which deals with fraudulent or malicious initiation of proceedings), but the appellant claims it was not properly dealt with. The respondent argues that the Adjudicating Authority's order correctly noted the existence of a debt and default and that initiation by a related party is not a bar for a Section 7 proceeding. The Resolution Professional informed the tribunal that the Committee of Creditors (CoC) has been constituted but the invitation for Expression of Interest (Form G) has not been issued yet.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), admitted the appeal for consideration and issued formal notice to the respondents. Respondent No. 1 (represented by Mr. I.P.S. Oberoi) and Respondent No. 2, the Resolution Professional (represented by Mr. Rohit Gupta), were granted 10 days to file their reply. The appellant is permitted to file a rejoinder within 5 days thereafter. The appeal is listed for the next hearing for 'admission (after notice)' on 26 October 2026. The tribunal directed that all pleadings must be completed by this date and no further time for this purpose will be granted. Furthermore, the NCLAT stayed a specific direction contained in Paragraph 38 of the order impugned in Company Appeal (AT) (Ins.) No. 1778 of 2026 until the next date of hearing. The nature of this specific direction is not detailed in the provided text.

Topics: Insolvency Appeal, Minority Shareholder Rights, Section 7 IBC