NCLAT Admits Pradeep Kumar Jain's Insolvency Appeal

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

Order Date: 21 September 2026

Case Overview

This appeal (Comp. App. (AT) (Ins) No. 1780 of 2026) was filed by Pradeep Kumar Jain, who is the personal guarantor to Jain Timber Co. Pvt. Ltd. and Mittal Lumber Pvt. Ltd., against an order passed by the Adjudicating Authority. The respondents are Union Bank of India & Anr.

The appellant contended through counsel Ms. Honey Satpal, Mr. Akash Agarwalla, Ms. Tanya Gupta, and Mr. Aman that the Adjudicating Authority passed its order without considering the factual and legal aspects of the matter. Specifically, the appellant argued that the financial creditor (Respondent No. 1, Union Bank of India) had consented to the initiation of proceedings under Section 94 of the Insolvency and Bankruptcy Code before the Adjudicating Authority, but this consent was not properly considered.

Respondent No. 1 (Union Bank of India), represented by Mr. Sandeep Bhuraria and Ms. Vaishnavi Prakash, opposed the appeal, submitting that there was no merit in it and that the Adjudicating Authority's order was factually and legally correct. The financial creditor expressed apprehension that if notice were issued in the appeal, the appellant might use the pendency of the appeal before the Appellate Tribunal as a defense to delay recovery proceedings.

Final Outcome

The NCLAT bench comprising Justice Mohammad Faiz Alam Khan (Member Judicial) and Arun Baroka (Member Technical) heard both parties and, without commenting on the merits of the submissions, decided to issue notice to the respondents. The appellant was directed to take necessary steps along with process fee and requisites within three working days from the order date. The matter was listed for further hearing on 30 October 2026 under the caption 'For Admission (After Notice)'.

The Tribunal explicitly clarified that the pendency of this appeal shall not affect any proceedings or recovery proceedings pending before any other forum.

Topics: Insolvency, Personal Guarantor, Banking