Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 16.10.2026
Case Overview
This appeal was filed by Suyog Satish Pachange against an order of the Adjudicating Authority that rejected a resolution plan and ordered the liquidation of a corporate debtor. The Adjudicating Authority had found the appellant ineligible under Section 29A(g) of the Insolvency and Bankruptcy Code and identified multiple infirmities and non-compliances in the resolution plan with regard to various provisions of the RFRP (Request for Resolution Plan).
The appellant contended that the Adjudicating Authority should have remanded the resolution plan back to the Committee of Creditors (CoC) for reconsideration rather than ordering liquidation. Both the appellant and the CoC emphasized the importance of maximizing the value of the corporate debtor and protecting the employment of 150 employees. The Resolution Professional disclosed that the Fair Value of the Corporate Debtor was Rs.67 Lakhs, Liquidation Value was Rs.65 Lakhs, and the Plan Value was Rs.1 Crore.
The NCLAT found substance in the arguments that the object of the Code is to maximize the value of the corporate debtor and that liquidation should be the last resort. The tribunal acknowledged that an opportunity should have been given to the CoC to explore mechanisms for value maximization, potentially through the issuance of a fresh Form G.
Final Outcome
The NCLAT issued an interim order staying the liquidation process until the next hearing date. The liquidator was directed not to take any steps in furtherance of the impugned order and to maintain the corporate debtor as a going concern. The tribunal granted two weeks to respondents to file replies and one week for the appellant to file a rejoinder. The appeal was listed for admission hearing on 23.11.2026.
Topics: Corporate Insolvency, NCLAT Proceedings, Resolution Plan