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

Order Date: 25 August 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard an appeal (Comp. App. (AT) (Ins) No. 1554 of 2026) filed by Salim Diwan, Suspended Director of Krux Pharma Pvt. Ltd., against Orbit Lifescience Pvt. Ltd. (Operational Creditor) and another respondent. The appeal challenged the Impugned Order that had initiated Corporate Insolvency Resolution Process (CIRP) against Krux Pharma.

During proceedings, both parties informed the Tribunal that they had amicably settled their dispute through consent terms filed via Diary No. 113837 dated 24 August 2026. The settlement agreement established a mechanism to discharge the debt owed by Krux Pharma to Orbit Lifescience. While the operational creditor acknowledged that the debt had not been fully discharged (with some payments pending through post-dated cheques), they consented to setting aside the Impugned Order and terminating the CIRP.

The IRP (Interim Resolution Professional), Mr. Aakash Parikh, appeared in person and submitted that he would abide by the Tribunal's order.

Final Outcome

The NCLAT disposed of the appeal with specific directions referencing the Supreme Court's judgment in Glas Trust Company Llc vs Byju Raveendran (Civil Appeal No. 9986 of 2024). The Tribunal directed: (a) Appellant and Respondent No. 1 to prepare Form-FA and hand it to the IRP within one week; (b) IRP to collate claims and constitute Committee of Creditors (CoC) within stipulated time but not later than 20 days from claim collation, then place Form-FA before CoC for consent; (c) If CoC grants consent with requisite majority, IRP to file application Form-FA before Adjudicating Authority within three days.

The Tribunal additionally directed that no 'Form G' (public announcement) shall be issued until disposal of the Section 12A application. The NCLAT requested the Adjudicating Authority to dispose of the Section 12A application within three weeks of presentation. Liberty was granted to Respondent No. 1 to revive the appeal if settlement terms are not complied with.

Topics: Insolvency Settlement, NCLAT Proceedings, Corporate Debt