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

Order Date: 25.08.2026

Case Overview

This appeal, CA (AT) (Ins) No. 1522 of 2026, was filed by PTC Engineering India Pvt. Ltd. under Section 61 of the Insolvency and Bankruptcy Code, 2016. It challenges an order dated 04.08.2026 from the National Company Law Tribunal (NCLT), New Delhi Bench III, which dismissed PTC's application (IA No. 4528 of 2023) and vacated an interim order that had protected its possession of a factory property. The appellant also filed an interlocutory application (IA No. 5846 of 2026) seeking a stay on the NCLT order and to restrain the Liquidator from auctioning the property.

The dispute concerns a factory premises at Plot No. C198, Yadav Nagar Industrial Area, Bulandshahar Road, Ghaziabad, Uttar Pradesh. PTC Engineering entered into an Agreement to Sell dated 01.03.2019 with the Corporate Debtor, Nipman Fasteners Industries Pvt. Ltd., for the property for a total consideration of ₹6.31 crore. PTC paid ₹5 crore (₹2 crore and ₹3 crore in two tranches) and was put in possession. The balance ₹1.31 crore was to be paid upon the release of the bank charge (held by State Bank of India) and completion of formalities for the sale deed execution. As the sale deed was not executed, the parties entered into a Sub-Lease Agreement dated 21.09.2019, leasing the property to PTC from 01.10.2019 to 30.09.2020 at a monthly rent of ₹50,000.

PTC contends it is a victim of fraud, alleging the Corporate Debtor never disclosed that SBI had approved the sale of the property via a sanction letter on 02.12.2019. It claims to have established a factory on the property where 200 workmen are employed and that dispossession would cause irreparable injury. The Liquidator, Dharmendra Kumar, argues the agreements are void as the original lease from UPSIDC to the Corporate Debtor prohibited sub-leasing without prior written consent. He also contends both agreements lapsed as time was the essence; the sale agreement terminated after 31.08.2019 and the sub-lease was never extended beyond 30.09.2020. Furthermore, the Liquidator informed the tribunal that an auction for the property has concluded with a maximum bid of ₹25 crore and the EMD has been deposited.

Final Outcome

The NCLAT granted interim relief to PTC Engineering. It directed that the appellant shall not be dispossessed from the disputed property in Ghaziabad until the next date of listing, 16.09.2026. The tribunal found that PTC has a prima facie case, the balance of convenience is in its favor, and it would suffer irreparable loss if dispossessed. The respondents were granted two weeks to file a reply, and the appellant one week thereafter to file a rejoinder. The matter is listed for admission (after notice) on 16.09.2026.

Topics: Insolvency Litigation, Property Dispute, Interim Relief