Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: 18 August 2026

Case Overview

The National Company Law Appellate Tribunal (NCLAT) heard an interlocutory application (I.A. No. 7970 of 2025) filed by NKGSB Co-Operative Bank Ltd. seeking condonation of a 92-day delay in refiling its main appeal. The appeal (Company Appeal (AT) (Insolvency) No. 07 of 2026) challenges an order from the National Company Law Tribunal (NCLT) that approved a resolution plan for Omkar Specialty Chemicals Ltd. The core dispute concerns the bank's status being changed from a secured creditor (as previously declared by the NCLT on 08 October 2024) to an unsecured creditor in the approved plan. The appellant's counsel, Mr. Sagar Wagle, detailed the procedural history: the appeal was initially filed on 06 September 2025, with subsequent defect sheets issued on 09 September, 19 September, 06 October, 14 October, and 04 November 2025. Defects were remedied on 15 September, 25 September, 12 October, 20 October, and finally on 16 December 2025. A 42-day delay on the last occasion was attributed to reasons specified in paragraph 5 of the application. The legal argument centered on a comparison between the NCLAT Rules, 2016, and the Supreme Court Rules, 2013. The appellant cited the Supreme Court's judgment in CA Ramchandra Dallaram Chaudhary vs. Adani Infrastructure and Developers Private Limited, which strictly enforces its 28-day defect removal period. In contrast, the appellant argued that Rule 26(2) and (3) of the NCLAT Rules grants discretion to the Registrar or the Tribunal to condone delays, as it prescribes a 7-day period for compliance but allows the Registrar to grant extensions for sufficient cause.

Final Outcome

The NCLAT allowed the application (I.A. No. 7970 of 2025) and condoned the 92-day delay in refiling. The Tribunal issued formal notice to the respondents, who were represented by advocates Mr. Amey Hadwale (for the Resolution Professional, Respondent 1) and Mr. Smit Shah (for Respondent 4). The appellant's request for a stay on the resolution plan was denied, as counsel for the respondent confirmed the plan had already been implemented. The substantive appeal, which will adjudicate the dispute over the bank's secured creditor status, was listed for further hearing on 12 October 2026.

Topics: Insolvency Appeal, Creditor Rights, Judicial Procedure