Authority: National Company Law Tribunal Allahabad Bench Prayagraj (Division Bench)

Order Date: 9th June, 2026

Case Overview

The National Company Law Tribunal (NCLT) Allahabad Bench heard multiple Interim Applications (IAs) in the ongoing Corporate Insolvency Resolution Process (CIRP) of Simbhaoli Sugars Limited (Corporate Debtor), initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by Oriental Bank of Commerce (now Punjab National Bank). The proceedings involved four separate applications:

  • IA No.80/2026: Filed by the Resolution Professional (RP) seeking direction for refund of ₹28,02,500 (Twenty-Eight Lakhs Two Thousand and Five Hundred) transferred via NEFT (UTR: PUNBN62025103055098485) on 30.10.2025 to Cute Chemicals India for supply of Phosphoric Acid that was never delivered. The amount was to be refunded to Simbhaoli Sugars Limited's CIRP account (Account No: 6717002100005940, IFSC: PUNB0671700, Branch: Sector 63, Noida). After substituted service via newspaper publication and affidavit of compliance filed on 2nd April 2026, the non-applicant respondent was set ex-parte due to no representation.
  • IA No.94/2026 & IA No.343/2026: Related to sugar cane allocation issues during the crushing season (October 2025 - March 2026) where the Corporate Debtor received less cane allocation. The Cane Commissioner, Uttar Pradesh (Sugar and Cane Department) is involved as the appellate authority under the UP Sugar Cane Regulation of Supply & Purchase Act, 1953. Concerns were raised about potential recurrence in the next crushing season starting September 2026.
  • IA No.99/2026: Details not specified in the order, but an interim order continues while awaiting reply from non-applicant respondent within two weeks.

Final Outcome

The Tribunal adjourned all applications to 3rd August 2026 for further hearing. Specifically:

  • IA No.80/2026: Adjourned for ex-parte hearing
  • IA No.94/2026 & IA No.343/2026: Cane Commissioner directed to file affidavit regarding policy for supplying cane to mills under CIRP in next season as per UP Cane Sugar Act
  • IA No.99/2026: Respondent given two weeks to file reply, interim order continues

The Tribunal noted that cane allocation to mills under CIRP will be made according to the UP Cane Sugar Act, considering the interests of farmers and sugar mills, and the RP retains the right to challenge any prejudicial decisions.

Topics: Insolvency Proceedings, Sugar Cane Allocation, Corporate Debtor Refund