Authority: National Company Law Appellate Tribunal, Principal Bench, New Delhi
Order Date: July 7, 2026
Case Overview
The National Company Law Appellate Tribunal (NCLAT) heard two connected appeals (Company Appeal (AT) (Insolvency) No. 1175 of 2026 and Company Appeal (AT) (Insolvency) No. 1176 of 2026) filed by appellants Vinod Doulatani and Haresh Doulatani, who are personal guarantors. The appeals challenge an order dated June 19, 2026, passed by the Adjudicating Authority (NCLT).
The respondents are IIFL One Value Fund – Series B (a scheme under IIFL Alternative PE Fund) through IIFL Management Services Ltd. (Investment Manager), who initiated insolvency proceedings against the appellants as a minority debenture holder.
The core legal issue revolves around the interpretation of the Debenture Trust Deed, which allegedly contains provisions that prohibit a minority debenture holder from filing any petition under Section 95 of the Insolvency and Bankruptcy Code (IBC). The appellants challenged the respondent's locus standi to initiate the proceedings based on this contractual restriction.
The Adjudicating Authority had taken the view that this issue was premature and should be raised after the Resolution Professional submits their report under Section 99 of the IBC. The appellants contended that the locus of the petitioner who commences proceedings under IBC cannot be decided by the Resolution Professional, who can only ascertain the existence of debt and default.
Final Outcome
The NCLAT issued notice to the respondents through speed post and directed the appellant to provide respondents' email addresses and mobile numbers for service. The tribunal granted an interim stay on the proceedings until the next hearing. Both appeals have been listed for hearing on August 19, 2026.
Topics: Insolvency Proceedings, Locus Standi, Debenture Trust Deed