Authority: National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi
Order Date: 30 June 2026
Case Overview
This is an appeal (Comp. App. (AT) (Ins) No. 1103 of 2026) filed by Mrs. Varsha Patel, the suspended director of Corporate Debtor CMT Mechanised System Pvt. Ltd., against an order dated 25 June 2026 passed by the Adjudicating Authority (NCLT). The NCLT had admitted a Section 9 application filed by the operational creditor, Alta Performance Materials India LLP, initiating the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor. The appellant's counsel argued that a previous application, where a default was revived by the Appellate Tribunal, had been dismissed. A subsequent request for time to deposit the entire 'Part IV' amount of Rs. 2,62,19,888.73 (Two Crore Sixty-Two Lakh Nineteen Thousand Eight Hundred Eighty-Eight and Seventy-Three Paise) by the Corporate Debtor was not considered, leading to the impugned admission order.
Final Outcome
The NCLAT issued an interim order, directing the appellant to deposit the remaining Part IV amount (after a payment of Rs. 65,00,000 already made to the operational creditor) with the Registrar of the NCLAT in an interest-bearing fixed deposit within seven days. Notice was issued to the respondents. Pending the next hearing on 14 July 2026, the Interim Resolution Professional (IRP) is restrained from taking any further steps in pursuance of the impugned order and is specifically prohibited from constituting the Committee of Creditors (CoC).
Topics: Insolvency Appeal, Operational Debt, Interim Stay