Authority: National Company Law Appellate Tribunal (NCLAT) Principal Bench, New Delhi
Order Date: 14 August 2026
Case Overview
This is an appeal (Comp. App. (AT) (Ins) No. 1498 of 2026) filed by Bharati Trading Enterprises Private Limited (Appellant) against Tecso Project Ltd. (Respondent). The appeal challenges an order (impugned judgment) passed by the Adjudicating Authority (National Company Law Tribunal or NCLT). The Appellant's counsel argued that the NCLT failed to properly consider the appellant's case regarding debt and default under Section 9 of the Insolvency and Bankruptcy Code (IBC). Furthermore, the NCLT dismissed the Section 9 application and imposed a penalty of Rs. 2,00,000 (Two Lakh Rupees) on the appellant without providing reasons or an opportunity for a hearing. The appellant sought an interim stay on the penalty deposition directive contained in paragraph 23 of the NCLT's order.
Final Outcome
The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), found the appellant's submissions merited consideration. The tribunal issued a formal notice to the respondent, Tecso Project Ltd., and directed the appellant to complete the necessary procedural steps within four working days. Crucially, as an interim measure, the NCLAT ordered a stay on the NCLT's direction for the appellant to deposit the Rs. 2 lakh penalty. This stay will remain in effect until the next hearing date, which is scheduled for 3 September 2026.
Topics: Insolvency Appeal, NCLAT Order, Penalty Stay