Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 14.10.2026
Case Overview
This order addresses two connected appeals (Comp. App. (AT) (Ins) No. 1873 of 2026 and Comp. App. (AT) (Ins) No. 1878 of 2026) filed by Pallav Maheshbhai Kumbhani and Chandrikaben Maheshbhai Kumbhani (Appellants) against Kataria Plastics Pvt. Ltd. & Anr. (Respondents). The appeals challenge an order from the Adjudicating Authority (NCLT) that admitted an insolvency petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
The principal allegation from the Appellants is that the Adjudicating Authority lacked jurisdiction because the debt in question did not meet the minimum threshold of ₹1 crore required under Section 4 of the IBC. The Appellants' counsel argued that the Operational Creditor (Respondent) had concealed a payment of ₹25 lakhs made on 05.02.2025. Furthermore, they submitted an additional affidavit correcting the total invoice amount from ₹99,35,914/- to ₹1,00,67,644/- and disputing the interest calculation of ₹1,16,28,841/-. The Appellant's own interest calculation is ₹16,92,927/-.
The Appellants contend that after accounting for the ₹25 lakh payment, the principal due is approximately ₹75 lakhs. Even with their calculated interest of ₹16.93 lakhs, the total dues would be approximately ₹92.6 lakhs, which is below the ₹1 crore statutory threshold.
Final Outcome
The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan and Mr. Naresh Salecha, issued notice to the Respondents and granted an interim stay on the operation of the Impugned Order (the NCLT's admission order) until the next date of hearing. The Appellants were directed to complete service of notice within three working days. The matter has been listed for the next hearing on 23.11.2026.
Topics: Insolvency Threshold, Jurisdictional Challenge, NCLAT Stay