Authority: National Company Law Tribunal, Ahmedabad Bench (Court 2)

Order Date: 16/06/2026

Case Overview

The National Company Law Tribunal (NCLT) Ahmedabad heard multiple interconnected applications in the insolvency proceedings of Aditya Prints Pvt Ltd. The matter involved IA/1304(AHM)2023, IA/543(AHM)2024, and IA/1222(AHM)2025 within the main petition CP(IB)/64(AHM)2021 filed by Vidhata Machinery Pvt Ltd against Aditya Prints Pvt Ltd.

The primary issue before the tribunal was a substitution application (IA/1222(AHM)2025) filed by State Bank of India (SBI) seeking to substitute itself as the applicant in place of the liquidator in proceedings under Section 66 of the Insolvency and Bankruptcy Code, 2016. The application was based on a resolution passed in the 6th meeting of the Stakeholders Consultation Committee (SCC) held on 21 September 2024, which decided to assign the Section 66 application to SBI as a secured financial creditor, with any recovery proceeds to be treated as SBI's asset.

The tribunal observed several procedural irregularities: the substitution application was filed on 1 October 2025 despite the SCC resolution being passed much earlier, with no explanation for the delay; the matter under Section 66 IBC (IA/1304/2023) was still pending adjudication before the tribunal with no crystallized liability; and there was no evidence of any financial consideration paid to the liquidation estate for this assignment. The liquidator was absent from the proceedings and failed to produce records showing the accounting treatment of this purported asset.

The bench noted that the SCC and liquidator had improperly treated a pending legal claim as a "non-readily realisable asset" and attempted to assign it to SBI without tribunal consent, despite the matter being sub judice. The tribunal found this approach contrary to the provisions of IBC 2016.

Final Outcome

The NCLT dismissed IA/1222(AHM)2025 (the substitution application) under Rule 11 of NCLT Rules 2016, declaring it a vexatious proceeding. The tribunal imposed a cost of ₹1 lakh on SBI, payable to the PM Relief Fund within 7 days of the order. The Assistant General Manager of SBI and the liquidator were directed to appear before the tribunal on the next hearing date for IA/1304/2023 to make their submissions. A copy of the order was directed to be sent to the Insolvency and Bankruptcy Board of India (IBBI) for information and record.

Topics: Corporate Insolvency, Banking Regulation, Legal Procedure