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

Order Date: 12 October 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard three connected appeals (Comp. App. (AT) (Ins) No. 1845, 1854, and 1855 of 2026) concerning the corporate insolvency resolution process of SRS Real Estate Ltd. The appellants include Orange Castle Pvt. Ltd. (the Successful Resolution Applicant), LIC Housing Finance Ltd. (a secured financial creditor), and Shyam Arora (the Resolution Professional).

The appeals challenge the order of the Adjudicating Authority (NCLT) which rejected the resolution plan submitted by Orange Castle Pvt. Ltd. The Adjudicating Authority had dismissed the plan on grounds of alleged undervaluation of the corporate debtor, creation of two classes of homebuyers, and non-consideration of claims of 59 homebuyers.

Appellants vehemently argued that the Adjudicating Authority was factually and legally incorrect in its assessment. They contended that the valuation procedure under the Insolvency and Bankruptcy Code was properly followed, that the resolution plan made reasonable provision for the 59 homebuyers' claims, and that no improper classification of homebuyers occurred. They emphasized that directing a fresh process including issuance of fresh Form-G and revaluation would cause significant delays and multiply litigation.

During proceedings, counsel for Mr. Anil Jindal, a homebuyer who had previously raised valuation concerns before the Adjudicating Authority, sought intervention in the appeal. The tribunal noted reference to Mr. Jindal's applications in paragraph 3.5.3 of the impugned order.

Final Outcome

The NCLAT granted interim relief by staying the Adjudicating Authority's direction for issuance of fresh Form-G and commencement of a fresh resolution process with revaluation until the next hearing date.

The tribunal directed the appellants to amend the memo of parties to include Mr. Anil Jindal as a respondent at address: SRS Multiplex, Top Floor City Centre, Sector-12, Faridabad, Haryana-121007. Mr. Jindal was granted one week to file any response, with the issue of his locus standi kept open for arguments. Other respondents were given two weeks to file replies, with appellants granted five days thereafter for rejoinder.

The appeals were listed for next hearing on 17 November 2026. The tribunal also directed all parties to submit concise written notes (2-3 pages) before the next date and permitted filing of certified copies of the impugned order within ten working days.

Topics: Corporate Insolvency, Resolution Plan Challenge, Homebuyer Rights