Authority: National Company Law Appellate Tribunal, Chennai Bench (Justice N. Seshasayee, Member (Judicial) and Jatindranath Swain, Member (Technical))

Order Date: 17 August 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) Chennai is hearing a batch of four interconnected appeals (CA (AT) (CH) (Ins) No. 98/2023, 109/2022, 09/2022, and 01/2022) concerning ownership disputes over shares in Appollo Distilleries and Breweries Pvt Ltd. The appeals involve three principal companies: M/s. Empee Distilleries Ltd, its sister concern M/s. South India Hotels Pvt Ltd (1st respondent in some appeals), and its subsidiary M/s. Appollo Distilleries and Breweries Pvt Ltd (2nd respondent in some appeals).

Empee Distilleries Ltd held 87% shareholding in Appollo Distilleries and pledged these shares with its sister concern, South India Hotels Pvt Ltd, to secure a loan of ₹20 Crores. When the loan was not repaid, South India Hotels invoked the pledge and eventually sold the shares to M/s. Goodyield Investments Pvt Ltd.

Empee Distilleries was subsequently drawn into Corporate Insolvency Resolution Process (CIRP). Its Resolution Professional filed an application (MA/731/2019) under Section 43 of the Insolvency and Bankruptcy Code, challenging the loan under the pledge creation. This application was dismissed by the Adjudicating Authority and forms the subject matter of CA (AT) (CH) (Ins) No. 09/2022.

The resolution process of Empee Distilleries was successfully completed with M/s. SNJ Distillers Pvt Ltd becoming the Successful Resolution Applicant (SRA). The SRA attempted to intervene in MA/731/2019, claiming that the shares which the corporate debtor (Empee Distilleries) held in Appollo Distilleries were part of the corporate debtor's assets and now belong to the SRA. This intervention was dismissed along with the main application.

Meanwhile, Appollo Distilleries was also drawn into CIRP at the instance of Punjab National Bank. This order is being challenged by both the SRA of the holding company (SNJ Distillers) and the suspended directors of Appollo Distilleries in separate appeals.

M/s. Goodyield Investments Pvt Ltd contends that it is a bona fide purchaser of the Appollo Distilleries shares from the pledgee (South India Hotels). The core dispute revolves around the title to the 87% shares of Appollo Distilleries that were originally held by Empee Distilleries.

Final Outcome

The NCLAT has heard arguments from Mr. PS. Raman, senior counsel appearing for the appellant in CA (AT) (CH) (Ins) No. 09/2022, and has adjourned the hearing of all interconnected appeals to 18 August 2026 at 2 PM. All interim orders granted by the Tribunal shall continue to operate until the next date of listing.

Topics: Corporate Insolvency, Share Pledge Dispute, NCLAT Proceedings