Authority: National Company Law Tribunal Principal Bench, New Delhi
Order Date: 08.07.2026
Case Overview
The application was filed by Mr. Manoj Kumar Goyal and Mrs. Kavita Goyal, erstwhile members of the Suspended Board of Directors of Bigmoon Buildcon Private Limited (Corporate Debtor), seeking recall of the order dated 04.01.2021 that approved the resolution plan submitted by a consortium comprising SBC Exports Limited and JM Propinfra Pvt. Ltd. The Corporate Insolvency Resolution Process (CIRP) was initiated on 03.09.2019 based on an application filed by financial creditor Mr. Dinesh Khetan under Section 7 of the IBC. The Committee of Creditors (CoC) approved the resolution plan with 100% voting share in its 11th meeting on 20.10.2020, with voting shares distributed as: Endless Services Pvt. Ltd. (50.43%), Capital Trade Links Ltd. (33.87%), Meratask Enterprise Pvt. Ltd. (formerly P-Net Solutions Ltd.) (14.56%), and the financial creditor (1.14%).
The applicants alleged that the CIRP and subsequent resolution plan approval were vitiated by fraud, misrepresentation, and collusion involving the financial creditor, CoC members, the resolution professional, and the Successful Resolution Applicant (SRA). Specific allegations included: gross undervaluation of the Corporate Debtor's two land parcels at Sadik Nagar, Ghaziabad (claimed market value of ₹65.55 crores vs. recorded fair value of ₹18.77 crores and liquidation value of ₹14.66 crores); the CoC members being shell companies controlled by the financial creditor; the SRA being connected to the financial creditor through common directorships; and the underlying debt being fraudulent as alleged in FIR No. 587/2020 pending before the Chief Judicial Magistrate, Ghaziabad.
The tribunal analyzed the application within the framework of established legal principles, noting that the power of recall under Rule 11 of NCLT Rules is distinct from and narrower than review power. The tribunal emphasized the binding nature of approved resolution plans under Section 31 of IBC and the non-justiciable nature of CoC's commercial wisdom regarding valuation and plan approval.
Final Outcome
The tribunal dismissed IA No. 1258 of 2025, rejecting the prayer for recall of the Plan Order dated 04.01.2021. The dismissal was based on multiple grounds: (1) the application was barred by limitation under Article 137 of the Limitation Act, 1963, having been filed more than three years after the right to apply accrued on 04.01.2021; (2) the resolution plan had already been implemented and the lands transferred to the SRA; (3) the allegations involved disputed questions of fact beyond the summary jurisdiction of NCLT; (4) the commercial wisdom of CoC regarding valuation is not open to judicial review; and (5) the applicants had adequate opportunity to raise objections during the CIRP through their rights under Sections 24(3)(b) and 24(4) of the Code. The tribunal clarified that its dismissal does not affect any independent civil or criminal remedies available to the applicants, including the pending criminal proceedings arising from FIR No. 587/2020.
Topics: Insolvency Resolution, Fraud Allegations, Judicial Recall