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

Order Date: 18th September, 2026

Case Overview

This appeal arose from Order dated 04.02.2026 passed by the NCLT Mumbai Bench in CP/197(MB)2025, where the Tribunal directed parties to maintain status quo in winding up proceedings under Sections 271 and 273 of the Companies Act, 2013.

The dispute involves Inlays India Private Limited (appellant) against Smart Chip Private Limited and Idemia France SAS (respondents). The appellant company, incorporated in 2009, was engaged in manufacturing RFID cards, e-passport inlays, and semiconductor devices. The case has a complex history involving:

  • Disputes over share transfers in 2011-2012 to ASK France SA (later merged into Paragon ID) for plant and machinery without proper RBI approvals
  • Outstanding export invoices worth approximately ₹36 crore for goods exported to ASK France SA/Paragon ID between 2013-2017
  • Bombay High Court winding up order dated 04.05.2018 and appointment of Official Liquidator
  • Enforcement Directorate notices under FEMA and Income Tax Act regarding export transactions
  • Disputes over company addresses and alleged fraudulent representations

Final Outcome

The NCLAT dismissed the appeal and affirmed the NCLT's status quo order dated 04.02.2026. The Appellate Tribunal also continued its own interim order dated 29.05.2026 that directed conversion of the company's dormant cash balance of ₹12,14,86,800 into fixed deposits with Canara Bank, Noida Branch. The FDR was to be maintained with automatic renewal and kept with the Registrar of NCLAT.

The Tribunal found that the company had shown no business activity for 7-8 years, with no current transactions reflected in its books of accounts. The status quo order was deemed necessary to preserve the subject matter of the winding up petition and prevent further complications. The NCLAT directed the NCLT Mumbai Bench to expedite the hearing of CP No. 197 of 2025 and decide it within six months from the date of this order.

Topics: Corporate Litigation, Winding Up Proceedings, Share Transfer Disputes