NCLT Rejects IVRCL Interim Relief for Auction

Case Name: IA(IBC)/816/2026 in CP (IB) No. 294/7/HDB/2017 U/s 7 of IBC

Parties: State Bank of India (Petitioner) vs IVRCL Limited (Respondent)

Court/Authority: National Company Law Tribunal, Hyderabad Bench - II

Hearing Date: 20 May 2026

Presiding Members: Shri. Rajeev Bhardwaj (Hon'ble Member - Judicial), Shri. Sanjay Puri (Hon'ble Member - Technical)

Legal Representation: Mr. S. Niranjan Reddy (Senior Counsel) along with Mr. Anupm Prakash (Counsel) for the Applicant

Petitioner: State Bank of India

Respondent: IVRCL Limited (Corporate Debtor)

Other Entities Mentioned: IOT Utkal Energy Services Limited

Representation: The Applicant was represented by Senior Counsel Mr. S. Niranjan Reddy along with Mr. Anupm Prakash

The Applicant sought interim relief to restrain the auction of IVRCL's shareholding in IOT Utkal Energy Services Limited
The Applicant asserted rights over the shares of IOT Utkal Energy Services Limited based on the SHA/AoA (Shareholders Agreement/Articles of Association)
The Applicant claimed alleged deemed sale of the IOT Utkal shares
IVRCL Limited has been in liquidation since 2019, with the liquidation order dated 26 July 2019
The Applicant treated the liquidation order as an "event of default" but issued the Notice of Default only on 30 July 2025
The IA (Interim Application) was filed at the stage of fresh auction after considerable lapse of time

The Tribunal found no case made out for grant of interim relief at this stage
The interim relief sought substantially overlapped with the final relief claimed in the Application
The Applicant's contentions regarding rights under SHA/AoA require adjudication and cannot be finally accepted at interim stage
The question of whether IVRCL can be sold as a going concern under the amended IBBI (Liquidation Process) Regulations, 2016 (notified on 14 October 2025) was left open for independent consideration

Interim relief restraining the auction was rejected
Liquidator directed to disclose in auction/process documents that the Applicant has raised a claim regarding IVRCL's shareholding in IOT Utkal Energy Services Limited
The disclosure must indicate that such claim is pending adjudication before the Tribunal
Any steps taken in the auction process shall remain subject to the outcome of the present Application
The auction process is also subject to the Tribunal's decision on permissibility of sale of Corporate Debtor as a going concern

Notice issued to Respondents
Matter adjourned to 08 June 2026 for filing of proof of service
The Tribunal clarified that nothing in the order should be treated as approval of the proposed sale of Corporate Debtor as a going concern
The question of sale as going concern under amended IBBI regulations will be considered independently in accordance with law