Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi (Per: Barun Mitra, Member (Technical))

Order Date: 21st September, 2026

Case Overview

The application (I.A. No. 4727 of 2026) was filed by Arvind Garg, the Liquidator of Moser Baer Solar Limited, seeking clarification of paragraph 56(iv) of the NCLAT's judgment dated 29.05.2026 in Comp. App. (AT) (Ins) No. 1820 of 2025. The specific clarification sought pertained to the refund of Rs. 54 crore deposited by JFC Finance (India) Limited (JFC), which was the second highest bidder in the fresh e-auction conducted pursuant to the Tribunal's directions.

Pursuant to the Tribunal's May 29, 2026 directions, a fresh e-auction was conducted on July 1, 2026. In this auction, a highest bidder (H1) emerged with a bid of Rs. 168 crore, while JFC emerged as the second highest bidder (H2) with a bid of Rs. 167 crore. The H1 bidder has been given time until September 30, 2026, to remit the entire sale consideration.

The Liquidator argued that stakeholders would suffer grave prejudice if the refund to JFC was made before the H1 bidder completed the payment of Rs. 168 crore. JFC opposed the application, contending that the direction in paragraph 56(iv) was clear and peremptory—requiring immediate refund once a higher bid emerged—and that the application was an impermissible attempt to modify the final judgment.

The Tribunal noted that its May 29, 2026 judgment had already been challenged before the Supreme Court (Civil Appeal No. 8638 of 2026) and was dismissed on July 17, 2026, thus acquiring finality. The Tribunal examined paragraphs 56(iii) and (iv) of its judgment and found the language unambiguous: the Liquidator must "forthwith return" the Rs. 54 crore deposit once a bid higher than JFC's emerges.

The Tribunal also noted that this was the Liquidator's second such application, having previously filed IA No. 4328 of 2026, which was disposed of on July 1, 2026. The Tribunal deprecated this conduct of seeking modification under the guise of clarification.

Final Outcome

The Tribunal rejected I.A. No. 4727 of 2026, affirming that JFC Finance (India) Limited is entitled to immediate refund of its Rs. 54 crore deposit. The related IAs (Nos. 5387, 5877 & 5918 of 2026) seeking impleadment were also closed. The Liquidator must comply with the original direction to refund the amount forthwith.

Topics: Corporate Insolvency, Liquidation Process, Judicial Clarification