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

Order Date: 21 September 2026

Case Overview

This is an appeal (Comp. App. (AT) (Ins) No. 1774 of 2026) filed by Poonam Jain, a Personal Guarantor to Jain Timber Co. Pvt. Ltd. and Mittal Lumber Pvt. Ltd., against an order passed by the Adjudicating Authority (likely the NCLT). The appellant, represented by advocates Ms. Honey Satpal, Mr. Akash Agarwalla, Ms. Tanya Gupta, and Mr. Aman, contended that the Adjudicating Authority passed its order without considering the factual and legal aspects of the matter. A key argument was that the financial creditor, Respondent No. 1 (Union Bank of India), had consented to the initiation of proceedings under Section 94 of the Insolvency and Bankruptcy Code (IBC) before the Adjudicating Authority, but this consent was erroneously not considered in the right perspective.

The respondent, Union Bank of India, represented by advocates Mr. Sandeep Bhuraria and Ms. Vaishnavi Prakash, opposed the appeal. They submitted that the appeal lacked merit and the Adjudicating Authority's order was factually and legally correct. The respondent expressed an apprehension that if notice were issued in the appeal, its pendency before the NCLAT could be used by the appellant as a defense to delay ongoing recovery proceedings.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Arun Baroka (Member-Technical), heard the arguments from both sides. Without commenting on the merits of the case, the Tribunal found it appropriate to issue formal notice to the respondents. The appellant was directed to take all necessary steps along with the process fee within three working days. The appeal was listed for the next hearing on 30 October 2026 under the caption 'For Admission (After Notice)'. Critically, the Tribunal clarified that the mere pendency of this appeal would not affect any other proceedings or recovery proceedings pending before any other forum.

Topics: Insolvency, Personal Guarantor, NCLAT