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

Order Date: 17 July 2026

Case Overview

The application was moved by Technology Park Limited, a financial creditor of the corporate debtor that held a 97% voting share in the Committee of Creditors (CoC). The Corporate Insolvency Resolution Process (CIRP) was initiated by an operational creditor, during which the Interim Resolution Professional collated claims and constituted the CoC, assigning the appellant 97% voting share and Bank of India (a secured financial creditor) 0.55% voting share.

The Enforcement Directorate filed an application before the Adjudicating Authority alleging that the Section 9 petition was collusive, leading to termination of the CIRP. Consequently, the suspended management was required to retake control, but the whereabouts of the directors are unknown, leaving the corporate debtor under nobody's control.

Bank of India issued an auction notice under Section 13(4) of the SARFAESI Act dated 01.07.2026, scheduling an auction for 24.07.2026. Multiple appeals have been filed challenging the termination order in Comp. App. (AT) (Ins.) 490/2026, 544/2026, 549/2026, and 650/2026 by various creditors including the appellant and the resolution professional.

The Enforcement Directorate has provisionally attached properties worth ₹477.68 crores, pending confirmation, though the specific details of attached properties are not mentioned in the impugned order. Bank of India stated it was unaware whether the properties it proposed to auction were included in the ED's attachment.

Final Outcome

The NCLAT suo motu impleaded Bank of India as the 5th respondent in the appeal. The tribunal directed Bank of India not to hold any auction on 24.07.2026 or any other day pursuant to its auction notice dated 01.07.2026, while permitting the bank to file its reply and seek vacation of the interim order.

The Registry was directed to consolidate all four appeals (Comp. App. (AT) (Ins.) 490/2026, 544/2026, 549/2026, and 650/2026). Cases previously scheduled for 30.07.2026 and 27.08.2026 were advanced to be heard together on 30.07.2026, with fresh notifications to be issued for the date change.

Topics: Insolvency Proceedings, SARFAESI Auction, Asset Attachment