Authority: National Company Law Tribunal, Ahmedabad Bench (Court-2)
Order Date: 09/06/2026
Case Overview
The National Company Law Tribunal (NCLT) Ahmedabad heard applications IA/1142(AHM)2025 in IA/658(AHM)2023 and IA/1143(AHM)2025 in IA/91(AHM)2023. These applications were filed by Bank of India (Applicant) seeking substitution in proceedings against Shree Rajeshwaranand Paper Mills Ltd (Respondent). The applications were filed with a delay of two years after the resolution plan was approved. The Learned Counsel for the Applicant submitted that despite the resolution plan containing a clause that the Financial Creditor (FC) would pursue pending applications, the substitution applications were not filed promptly, resulting in continued payment of fees to the Resolution Professional. The tribunal noted that objections were raised by Respondent-3 regarding the delay, and the Applicant's counsel could not provide satisfactory explanations for the delay. It was acknowledged that the resolution plan had already been implemented.
Final Outcome
The NCLT condoned the delay of two years and allowed the substitution applications filed by Bank of India. The approval was granted subject to the condition that the Applicant pays costs of Rs. 25,000 to the Prime Minister's Relief Fund within seven days from the date of the order. The tribunal directed the filing of a compliance affidavit in the main applications IA/658(AHM)2023 and IA/91(AHM)2024. The applications IA/1142(AHM)2025 and IA/1143(AHM)2025 were disposed of accordingly. The matter was listed for further consideration on 06.07.2026 in the main applications.
Topics: Insolvency Proceedings, Substitution Application, Delay Condonation