Case Details

Case Name: M/S APCO MOTORS V/S M/S PSR METALS PRIVATE LIMITED

Court/Authority: National Company Law Tribunal (NCLT), Allahabad Bench, Prayagraj

Case Number: CP (IB) No.45/ALD/2024

Interlocutory Applications: IA (Plan) No.04/2026, IA No.45/2026, IA No.123/2026 & IA No.126/2026

Date of Order: 20th May, 2026

Coram: Sh. Praveen Gupta, Hon'ble Member (Judicial) and Sh. Ashish Verma, Hon'ble Member (Technical)

Parties Involved

Petitioner/Applicant in IA No.45/2026: APCO Motors (Represented by Sh. Nikhil Kumar Verma, Advocate)

Respondent No. 1 & 2: Presumably the Resolution Professional and the Committee of Creditors (CoC) of PSR Metals Private Limited

Resolution Professional: Ms. Harmeet Kaur (Represented by Sh. Anil Kumar with Sh. Nishant, Advocate)

Other Counsel: Sh. Srijan Mehrtora, Adv. for Applicant in IA No.45/2026; Sh. Anuj Kr. Pandey, Adv. for Applicant in IA No.123/2026

Issues / Allegations / Violations

The core issue in IA No.45/2026 was the eligibility of APCO Motors as a Resolution Applicant for PSR Metals Private Limited, which is under Corporate Insolvency Resolution Process (CIRP). The Applicant sought to:

  • Set aside a communication dated 2nd January 2026 from the Resolution Professional.
  • Be declared not ineligible under Section 29A of the Insolvency and Bankruptcy Code, 2016.
  • Be permitted to file a Modified Resolution Plan and have it put to vote before the Committee of Creditors (CoC).

The primary allegation was that the Applicant was wrongly deemed ineligible based on its CIBIL report, which declared it a wilful defaulter.

Findings & Observations

The Tribunal, in its previous order dated 27.01.2026 (paras 9-11), had directed the Resolution Professional to place APCO Motors' proposal before the CoC with all relevant inputs, including the CIBIL report. The CoC was given full liberty to objectively examine the Applicant's eligibility independently. The CoC considered the matter in its meeting held on 30.01.2026 and concluded its voting on 24.02.2026.

Penalties / Settlements / Directions

The Committee of Creditors (CoC), after independent evaluation, concluded that APCO Motors was not eligible to participate in the resolution process. This decision was communicated to the Applicant via an email dated 25.02.2026. Consequently, the applicant's prayer to have its plan considered was rejected.

Final Ruling & Enforcement

For IA No.45/2026: The application was disposed of as having become infructuous because the CoC had already taken a decision against the Applicant's eligibility, thus satisfying the prayers sought.

For IA No.123/2026: The hearing was adjourned to 3rd July 2026 at the request of the Applicant's counsel.

For IA No.126/2026: The hearing was adjourned to 3rd July 2026, with directions for the non-applicants/respondents to complete their pleadings within ten days.

The final outcome is that APCO Motors is officially out of the resolution process for PSR Metals Pvt. Ltd. due to its ineligibility under Section 29A.