Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi (Justice Mohd. Faiz Alam Khan, Member (Judicial) and Arun Baroka, Member (Technical))

Order Date: 30.10.2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard an amendment application (IA No. 5534 of 2026) filed by Om Prabhu Ashish Co-Operative Housing Society Limited in Appeal No. Comp. App. (AT) (Ins) No. 1321 of 2026 against Vivaa Tradecom Ltd. & Anr. The application sought to amend the Memorandum of Appeal to formally link two orders from the National Company Law Tribunal (NCLT), Mumbai Bench II: the original order dated 23.04.2026 and the subsequent correction order dated 16.06.2026.

The dispute originates from Corporate Insolvency Resolution Process (CIRP) proceedings against Shamik Enterprises Private Limited (Corporate Debtor), initiated by Hindustan Candle Manufacturing Co. Pvt. Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016. The Appellant Society had executed a Development Agreement with the Corporate Debtor on 12.12.2014 but terminated it on 18.02.2021, which was accepted by the Corporate Debtor on 19.11.2021. During CIRP, Respondent No. 1 (Vivaa Tradecom Ltd. as Successful Resolution Applicant) sought to restrain the Society from transferring development rights to a new developer (AV REALTY LLP) through various applications before the NCLT.

The NCLT, in its order dated 23.04.2026 in IA 1923/2023, made prima facie observations that the Society's termination of the development agreement appeared void ab initio and noted that the interim restraint order (from January 2026) was "made obsolete." Subsequently, on 16.06.2026, the NCLT passed a correction order substituting the word "obsolete" with "absolute" in the 23.04.2026 order, thereby making the interim restraint unconditional.

The Appellant argued before NCLAT that the two orders constitute a single, composite operative order due to the doctrine of merger, and the amendment was necessary to properly challenge the substantive restraint. The Respondents opposed the amendment, arguing it was time-barred as the appeal against the 23.04.2026 order should have been filed within 30 days, citing various case laws including V. Nagarajan vs S. K. S. Spat and Power Limited (2022).

Final Outcome

The NCLAT allowed the amendment application, holding that the order dated 23.04.2026 had merged with the correction order dated 16.06.2026. The Tribunal found the amendment consequential and not barred by limitation since both orders were already challenged in the appeal. The amended memo of appeal was taken on record, and the matter was listed for further hearing on 20.11.2026.

Topics: Insolvency Appeal, Amendment Application