Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: July 1, 2026
Case Overview
The appeal (Comp. App. (AT) (Ins) No. 222 of 2025) was filed by Deepak Modi, suspended director of the corporate debtor, against Shalfeyo Industries Pvt. Ltd. (Operational Creditor) and others. The appellant contended before the NCLAT that he was ready to satisfy the entire claim of the operational creditor amounting to ₹17 lakh (including interest) in full and final settlement. The appellant alleged that the operational creditor was more interested in prolonging the Corporate Insolvency Resolution Process (CIRP) rather than accepting the settlement, thereby misusing the Insolvency and Bankruptcy Code, 2016 as a recovery mechanism instead of for revival/resolution. The appellant also expressed readiness to pay the CIRP costs once determined by the Adjudicating Authority.
The operational creditor's counsel, while not objecting to the settlement amount of ₹17 lakh, raised procedural concerns regarding the submission of Form FA and bank guarantee. The Resolution Practitioner's counsel informed the tribunal that an application (I.A. No. 160 of 2023) for determination of CIRP costs was still pending before the Adjudicating Authority.
Final Outcome
The NCLAT bench comprising Justice Mohammad Faiz Alam Khan (Judicial Member), Arun Baroka (Technical Member), and Indevar Pandey (Technical Member) directed the appellant's counsel to file an appropriate affidavit confirming the settlement offer of ₹17 lakh as full and final payment of the operational creditor's claim including interest. The matter was listed for next hearing on July 31, 2026 at 2:00 PM, with any interim orders remaining operative until then.
Topics: Insolvency Settlement, Operational Debt, CIRP Costs