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

Order Date: 10 September 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) at Chennai heard four connected company appeals (AT)(CH)(Ins) Nos. 441/2026, 382/2026, 385/2026, and 102/2026 involving Gulam Mustafa Enterprises Pvt Ltd as the appellant. The respondents included India Housing Fund, Piramal Enterprises Limited, and other parties. The proceedings involve the Corporate Insolvency Resolution Process (CIRP) of Gulam Mustafa Enterprises Pvt Ltd, with financial creditors having total claims of approximately ₹1200 crore and involving about 2500 homebuyers, of whom over 2000 are now standard.

The tribunal noted that a CIRP for a project of this magnitude might be disadvantageous to all concerned parties and encouraged stakeholders to explore alternative resolution options. The erstwhile managing director and promoter of the corporate debtor, Gulam Mustafa, was present along with representatives of four financial creditors, members of the Committee of Creditors (CoC), authorized representatives of homebuyers, and the Interim Resolution Professional (IRP).

The appellant's counsel, Mr. R. Sankaranarayanan, submitted that the appellant is working with an investor interested in renewing the entire project and requested reasonable time to develop a workable plan. While financial creditors expressed impatience, the tribunal acknowledged the complexity of the case and opted to facilitate a settlement process.

Final Outcome

The NCLAT granted the appellant two weeks to present a concrete proposal to the Committee of Creditors. The tribunal directed the appellant to share all information required under Section 19 of the Insolvency and Bankruptcy Code (IBC), emphasizing that the quality of information shared would be a precondition for the tribunal's continued assistance in facilitating the settlement process. The IRP was directed to continue receiving and processing claims during this period.

The matters were listed for next hearing on 28 September 2026, immediately after admission. All interim orders were directed to continue operating until the next date of hearing.

Topics: Corporate Insolvency, Real Estate Resolution, Homebuyer Protection