Authority: National Company Law Appellate Tribunal, Chennai Bench

Order Date: 03 September 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) at Chennai heard four consolidated appeals (Company Appeal (AT) (CH) (Ins) Nos. 441/2026, 382/2026, 385/2026, and 102/2026) with Company Appeal (AT) (CH) (Ins) No. 441/2026 serving as the lead case. The appeals involve Gulam Mustafa Enterprises Pvt Ltd (the Appellant), a property developer currently undergoing Corporate Insolvency Resolution Process (CIRP), against respondents including India Housing Fund, Piramal Enterprises Limited, and others. The proceedings concern approximately 4,500 homebuyers whose interests are severely affected by the CIRP.

The Appellant, through senior counsel Mr. R. Shankaranarayanan, claimed to be working on a "reverse insolvency" solution and stated they have identified an investor to resolve the situation. The Resolution Professional (RP) informed the Tribunal that the Committee of Creditors (CoC) has already been constituted and an application to record this formation has been filed before the Adjudicating Authority. The RP also confirmed that an authorized representative (AR) for the homebuyers has been appointed.

The Tribunal expressed skepticism about the Appellant's promises, noting that their interest in the litigation is "only on life support." To verify the sincerity of the Appellant's claims regarding the reverse insolvency plan and identified investor, the Tribunal ordered the physical presence of both the Authorized Representative of the homebuyers and the Resolution Professional at the next hearing.

Final Outcome

The NCLAT issued an interim stay order halting any further progress in the CIRP until September 9, 2026. The Tribunal also required the physical presence of representatives from the financial creditors and the Resolution Professional at the next hearing. The matter has been listed for further hearing on September 9, 2026, under the same caption.

Topics: Corporate Insolvency, Real Estate, Homebuyer Protection