Authority: Supreme Court of India, Bench of Justices Joymalya Bagchi and Vipul M. Pancholi

Order Date: 16-06-2026

Case Overview

  • Civil Appeal No. 8446/2026 filed by Rare Asset Reconstruction Limited (appellant) against Express Resorts and Hotels Limited and others (respondents).
  • The appeal challenges the NCLAT order dated 25‑05‑2026 which set aside the NCLT’s refusal to approve a resolution plan under the Insolvency and Bankruptcy Code, 2016 (IBC).
  • The resolution plan was originally approved by the Committee of Creditors (CoC) in October 2020 during the COVID‑19 pandemic; subsequently about 90 % of creditors, including the appellant’s assignor, rescinded their consent.
  • Counsel for the appellant (Dr A.M. Singhvi) argued that the plan covered only 10 % of admitted debts, omitted statutory dues, and was based on an incorrect asset valuation, justifying the NCLT’s rejection under Section 31(2) IBC.
  • Respondent counsel (Balbir Singh) contended that the appellant was not a CoC member, that the CoC’s commercial wisdom had been previously endorsed by the Court, and that guarantees and funds for implementation were already furnished.
  • The NCLT had declined approval citing non‑compliance with Section 31(1) IBC and inadequate Net Present Value (NPV) estimation; the NCLAT overturned this on the ground that the NCLT did not specify which provision of Section 30 was breached.
  • The Supreme Court identified three issues for consideration: (i) compliance of the resolution plan with Section 31(1); (ii) proper assessment of litigation concerning properties at Neemrana and Jamdoli; (iii) correctness of the NPV valuation made during the pandemic and whether the Court may intervene under Article 142.

Final Outcome

  • The Supreme Court admitted the appeal.
  • Notice issued, returnable on 24‑07‑2026.
  • Counter‑affidavit to be filed by 17‑07‑2026; rejoinder affidavit by 23‑07‑2026.
  • Any decision taken by the NCLT shall be subject to the result of this appeal, and no party may claim any equity in respect of such decision.

Topics: Insolvency, Court Proceedings, Resolution Plan