Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: July 7, 2026
Case Overview
The appeal was filed by Q Top Fab Engineering Pvt. Ltd. (Corporate Debtor/Appellant) against Punjab National Bank & Anr. (Respondents), challenging the Order of the Adjudicating Authority which dismissed the appellant's petition filed under Section 10 of the Insolvency & Bankruptcy Code, 2016 (IBC).
The appellant's counsel submitted that the company was in the business of manufacturing and selling goods but ceased obtaining work orders after January 2020. Subsequently, the COVID-19 pandemic and associated lockdowns completely halted its business operations. Following April 2021 (coinciding with COVID Wave 2), two Financial Creditors initiated proceedings against the appellant under the SARFAESI Act and before the Debt Recovery Tribunal (DRT). The appellant contended that with no production, business, or workforce, it was left with only debt obligations.
In this context, the appellant filed an application under Section 10 of the IBC in January 2023 seeking initiation of the Corporate Insolvency Resolution Process (CIRP). The Adjudicating Authority dismissed the petition, characterizing it as an attempt to seek comfort under the moratorium provisions.
The NCLAT bench, comprising Justice N. Seshasayee (Member-Judicial) and Barun Mitra (Member-Technical), perused the documents and found that there was an arguable point in favor of the appellant warranting admission of the appeal.
Final Outcome
The NCLAT admitted the appeal and issued notice to the respondents (Punjab National Bank & Anr.). The appellant was directed to provide the mobile number and e-mail address of the respondents for service of notice through electronic or other available modes. The appellant was required to file requisites along with process fee within two days. The appeal was listed for next hearing on August 18, 2026.
Topics: Insolvency Appeal, COVID-19 Business Impact, NCLAT Procedure