Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 28th October 2026
Case Overview
This proceeding is an interlocutory application (I.A. No. 7762, 7763 of 2026) within a larger company appeal (Comp. App. (AT) (Ins.) No. 968 of 2026). The appellant is Pathways Retail Pvt. Ltd. and the respondent is Stove Kraft Ltd. The matter pertains to the withdrawal of insolvency proceedings initiated against Stove Kraft Ltd. under the Insolvency and Bankruptcy Code, 2016 (IBC). The Learned Counsel for the applicant (Pathways) informed the tribunal that the entire settlement amount had been paid to the operational creditor, a fact corroborated by an email dated 14th May 2026 referenced in a previous order from 22nd May 2026. A key point of contention was the procedure for withdrawal. The Learned Counsel for the Interim Resolution Professional (IRP) argued that as per the amended Section 12A of the IBC, a Committee of Creditors (CoC) must first be constituted, and any application for withdrawal requires approval from 90% of its members.
Final Outcome
The NCLAT bench, comprising Officiating Chairperson Justice Yogesh Khanna and Member (Technical) Barun Mitra, issued a directive for the constitution of a Committee of Creditors (CoC). This CoC is to be formed strictly for the limited purpose of considering and voting upon the application for withdrawal under Section 12A of the IBC. The matter was adjourned and is next listed for hearing on 26th November 2026.
Topics: Insolvency Resolution, Court Order, Settlement