Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: 03.07.2026
Case Overview
This appeal was filed by Vishal Kumar against an order dated 10.06.2026 passed by the Adjudicating Authority (NCLT) which had admitted a Section 9 insolvency application filed by United Breweries Ltd. The dispute involved cross-claims between the parties: the Corporate Debtor (appellant) claimed ₹10,34,74,016 against the Operational Creditor (United Breweries), while the Operational Creditor claimed ₹11,17,72,417.92 against the Corporate Debtor.
The Appellant challenged the NCLT order on grounds of factual inaccuracies in paragraphs 10, 13, and 14 of the order. The NCLAT found that the Adjudicating Authority committed an error in observing that even after adjusting the amounts, the threshold limit under Section 4 of the IBC was met. The Tribunal noted that if the Corporate Debtor's claim of ₹10,34,74,016 was adjusted against the Operational Creditor's claim of ₹11,17,72,417.92, the net amount would fall below the mandatory threshold limit for initiating insolvency proceedings.
Final Outcome
The NCLAT allowed the appeal and set aside the impugned order dated 10.06.2026. The insolvency admission against United Breweries Ltd. was overturned. The Tribunal did not impose any costs on the parties. The decision was based solely on the threshold calculation error and did not consider any subsequent settlement that may have been entered into between the parties.
Topics: Insolvency Proceedings, Threshold Calculation, Cross-Claims