Authority: National Company Law Tribunal (NCLT), Ahmedabad Bench - Court II

Order Date: 14 July 2026

Case Overview

This order pertains to two Interlocutory Applications (IAs) filed in the main Company Petition (IB) No. 266 of 2019 concerning the Corporate Insolvency Resolution Process (CIRP) of Jaybharat Textiles and Real Estate Limited.

  • IA No. 165 of 2021 was filed by the Resolution Professional, Mr. Naren Sheth, under Section 30(6) of the Insolvency and Bankruptcy Code, 2016 (IBC). This application sought the Tribunal's approval for a resolution plan submitted by a Successful Resolution Applicant, which had been approved by the Committee of Creditors (CoC).
  • IA No. 321 of 2021 was filed by a financial creditor, Bank of India (through its authorized representative Mr. Rakesh Kumar Garg), under Section 60(5) of the IBC. This application challenged the very approval of the resolution plan and opposed the constitution of the Committee of Creditors itself.

The Tribunal's decision was based on a prior order it had passed in IA No. 296 of 2020 in the same company petition. In that previous order, the Tribunal had directed the re-constitution of the Committee of Creditors and had also appointed a new Resolution Professional. This fundamental change in the constitution of the CoC, the body responsible for evaluating and approving resolution plans, rendered the plan approved by the previous CoC void and incapable of being proceeded with.

Final Outcome

The Tribunal held that both IA No. 165 of 2021 (seeking plan approval) and IA No. 321 of 2021 (challenging the CoC and the plan) had become infructuous, or devoid of purpose, due to the reconstitution of the CoC and the appointment of a new RP. Consequently, both applications were disposed of.

The practical consequence is that the corporate insolvency resolution process for Jaybharat Textiles and Real Estate Ltd. must continue afresh from the stage of the newly constituted Committee of Creditors under the new Resolution Professional. The resolution plan that was the subject of these applications is no longer valid.

Topics: Insolvency Resolution, Legal Challenge