Authority: National Company Law Tribunal, Kolkata Bench

Order Date: 16th June 2026

Case Overview

The National Company Law Tribunal (NCLT) Kolkata Bench, comprising Hon'ble Member (Judicial) Smt. Bidisha Banerjee and Hon'ble Member (Technical) Ms. Rekha Kantilal Shah, heard multiple interlocutory applications and a contempt application related to the corporate insolvency resolution process of J. Khetsidas Machine Tool Works Private Limited. The matter was initiated under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Small Industries Development Bank of India (SIDBI). The corporate debtor has been put under liquidation following an order dated 10th April 2026.

Key parties involved include the Employees' Provident Fund Organisation (EPFO), the Income Tax Department, the Commercial Tax Department, the Suspended Board of Directors (SBOD), and the Liquidator. The proceedings address various applications concerning claim submissions, progress reports, and compliance with directions.

A significant development noted is the order of the National Company Law Appellate Tribunal (NCLAT) in an appeal preferred by the SBOD against the liquidation order. The NCLAT observed that while the SBOD's resolution plan was found non-compliant and non-responsive during the Corporate Insolvency Resolution Process (CIRP), it is eligible to submit a scheme of compromise or arrangement under Regulation 2B of the IBBI Liquidation Process Regulations within 90 days from the liquidation order date.

Final Outcome

The Tribunal disposed of several applications:

  • IA(I.B.C)/228(KB)2026: The 5th Progress Report filed by the erstwhile Resolution Professional was taken on record and the application disposed of.
  • IA(I.B.C)/1738(KB)2025: Application by Income Tax and Commercial Tax Departments for condonation of delay in preferring claims was disposed of as infructuous since the corporate debtor is under liquidation, and claims must be filed with the liquidator.
  • IA(I.B.C)/1508(KB)2025: Similar application by EPFO for condonation of delay was disposed of as infructuous for the same reason.

Other matters were adjourned to 14th July 2026:

  • IA(I.B.C)/1829(KB)2025: Regarding the SBOD's scheme submitted under Regulation 2B. The SBOD was directed to file a reply affidavit within two weeks detailing steps taken in terms of the recent amendment and the NCLAT order.
  • IA(I.B.C)/913(KB)2025: Concerning compliance and cooperation from SBOD. The matter was listed for consideration on 14th July 2026 as substantial compliance was reported.
  • CONT.A. (IBC)/15(KB)2025: Contempt application where a compliance affidavit regarding directions must be filed within two weeks, with hearing on 14th July 2026.

The practical consequence is that the liquidation process continues, but with a potential alternative under Regulation 2B if the SBOD's scheme is approved by creditors within the stipulated timeframe.

Topics: Corporate Insolvency, Liquidation Process, NCLT Proceedings