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

Order Date: 24.06.2026

Case Overview

This appeal, Company Appeal (AT) (Ins) No. 1082 of 2026, was filed by Ankur Singh (Appellant) against an order dated 11.06.2026 passed by the National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj. The NCLT order had admitted an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) filed by Alakhram Infrastructure Pvt. Ltd. (Respondent No. 1/Operational Creditor). The appellant contended that a pre-existing dispute was raised before the issuance of the statutory demand notice under Section 8 of the IBC on 29.08.2024. Specifically, the appellant sent an email on 10.08.2024 to the operational creditor, elaborating on a genuine and bonafide dispute concerning defective work performed by Alakhram Infrastructure and the consequent losses suffered. The appellant also argued that he was compelled to issue three work orders on 09.05.2024 to third-party contractors to complete the work left unfinished by the respondent and had made payments to them. The appellant's counsel relied on judicial precedents to argue that a dispute requiring further investigation is sufficient grounds to reject a Section 9 application. The respondent argued that the debt and default were established and that the appellant had availed GST input credit. The Intervenor, AU Small Finance Bank, stated that the appellant was not a defaulter with them.

Final Outcome

The NCLAT bench, after hearing arguments and perusing the record, stayed the operation of the impugned NCLT order dated 11.06.2026 until the next date of hearing. The tribunal noted that the NCLT itself had admitted in paragraph 31 of its judgment that a dispute existed prior to the Section 8 notice but had failed to properly assess its substance. Respondents were given two weeks to file a reply, and the appellant was given one week thereafter to file a rejoinder. Responses to the intervenor's application are also to be filed within two weeks. The matter is listed for the next hearing on 21.07.2026 along with I.A. No. 4261 of 2026.

Topics: Insolvency Proceedings, Pre-existing Dispute, NCLAT Order