Authority: National Company Law Appellate Tribunal (NCLAT) at Chennai
Order Date: 18 August 2026
Case Overview
This order pertains to two connected Company Appeals (AT)(CH)(Ins) No. 258/2025 and 259/2025, filed by Mr. Mandava Prabhakar Rao, the Suspended/Erstwhile Director of the Corporate Debtor, NSL Nagapatnam Power and Infratech Ltd. The Appellant has challenged actions related to the Resolution Professional (Mr. Navneet Kumar Gupta) and other respondents. The appeals specifically concern the propriety of proceedings from the 20th, 21st, and 22nd Meetings of the Committee of Creditors (CoC).
A key procedural issue addressed was a request for clarification from the Learned Counsel for the Successful Resolution Applicant (SRA). They pointed out an error in the Tribunal's previous order dated 12.08.2026, which they felt inaccurately described the status of their impleadment request. The Tribunal reviewed a split judgment from Hon'ble Member Justice Sharad Kumar Sharma, which formed the basis of the earlier order. The split judgment had stated that the SRA's legal rights had not crystallized at the stage of the CoC meetings under appeal, as the Resolution Plan had not yet been approved. Consequently, any decisions taken in those CoC meetings would not affect the SRA's rights, leading to the denial of their impleadment at that interlocutory stage.
The Tribunal agreed with the SRA's counsel that the order dated 12.08.2026 should be read with the clarification that the SRA was indeed denied a hearing and impleadment at the level of the Learned Adjudicating Authority based on the reasoning in the split judgment.
Final Outcome
The Tribunal has reserved its judgment on the main appeals. All parties, including the Appellant, Respondents, and the Proposed Intervenor/SRA, are permitted to file written submissions not exceeding four to five pages in Times New Roman font size 14 within four days. These submissions should include specific paragraphs of any legal precedents they wish to rely upon. The final ruling on the appeals is pending.
Topics: Insolvency Proceedings, NCLAT Order