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

Order Date: 10 August 2026

Case Overview

This appeal challenges the impugned order dated 12 June 2026 passed in C.P (IB) No.193/KB/2025 by which a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) was admitted against Corporate Debtor Buxa Dooars Tea Company (India) Ltd. The appellants are suspended directors of the company, Roshan Lal Agarwal & Anr.

The principal allegation concerns discrepancies in the financial information presented in Form-1 Part-IV. The appellants contend that while Form-1 shows an outstanding amount of Rs. 9,03,57,078/-, the bank statements (Annexure 2-O) for the period 01 October 2023 to 13 May 2025 show a principal outstanding of Rs. 6,27,88,818/- and interest of Rs. 54,71,032/-, totaling Rs. 6,82,29,797/-. A further discrepancy exists regarding the date of default, which is listed as 14 March 2024 in Form-1 but appears as 16 December 2023 in the NeSL record.

The appellants argued that under Section 7(5) of the IBC, an opportunity should be given to correct an incomplete application. They expressed a strong inclination to settle the matter amicably with the respondent, State Bank of India, and have already submitted a One-Time Settlement (OTS) proposal.

The Resolution Professional confirmed that the Committee of Creditors (CoC) has been constituted and the process for calling claims is underway, though Form G has not yet been published.

Final Outcome

The NCLAT bench, comprising Officiating Chairperson Justice Yogesh Khanna and Members Barun Mitra and Ajai Das Mehrotra, issued an interim order. The appeal is listed for the next hearing on 21 September 2026. Until then, the Resolution Professional is directed not to issue Form G. The appellants are to serve the appeal paper book to the respondents within two days. Respondents have two weeks to file replies, followed by a two-week period for rejoinders. The counsel for State Bank of India was instructed to seek instructions regarding the proposed settlement.

Topics: Insolvency Appeal, Financial Discrepancy, Interim Stay