Authority: National Company Law Tribunal, Indore Bench (Court No. 1)

Order Date: 09/06/2026

Case Overview

This application (IA/337(MP)2026) was filed by JM Financial Asset Reconstruction Co Ltd under Section 60(5)(c) of the Insolvency and Bankruptcy Code, 2016 read with Rule 11 of NCLT Rules, 2016. The matter arises from TP 184 of 2019 [CP(IB) 113 of 2017] concerning Sandhya Prakash Ltd, which is in liquidation with Mr. Devendra Jain serving as the Liquidator.

The applicant sought substitution as the respondent in place of the Liquidator in the main application IA/76(MP)2023. This request was based on two key resolutions:

1. The 15th Stakeholders Consultation Committee (SCC) meeting held on 16 May 2025 resolved that "all pending litigations concerning Corporate Debtor shall be attended and handled by the two secured creditors viz. JM Financial Asset Reconstruction Company Limited & Punjab National Bank."

2. A Joint Lenders' Meeting convened on 7 August 2025 between JM Financial ARC and Punjab National Bank resulted in Punjab National Bank according its consent for JM Financial ARC to pursue and prosecute all pending litigations concerning the corporate debtor. It was further resolved that SCC members would contribute requisite amounts towards litigation costs and expenses.

The background reveals that after commencement of liquidation, the Liquidator made several attempts to sell the corporate debtor as a going concern. Following an e-auction sale notice dated 17 January 2025, the corporate debtor was ultimately sold as a going concern through a successful auction conducted on 14 February 2025.

The Liquidator, represented by counsel Mr. Nipun Singhvi, submitted that he had no objection to the present application filed by the applicant.

Final Outcome

The Tribunal, comprising Hon'ble Shri Brajendra Mani Tripathi (Member Judicial) and Hon'ble Shri Man Mohan Gupta (Member Technical), allowed the application IA/337(MP)2026. The bench directed the applicant to amend the main application IA/76(MP)2023 within one week to substitute JM Financial Asset Reconstruction Company Limited as the respondent in place of Mr. Devendra P. Jain, Liquidator. The amended copy must be served upon the other side, uploaded on the DMS Portal, and filed before the Tribunal.

Topics: Insolvency Litigation, Creditor Rights, Corporate Restructuring