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

Order Date: November 5, 2026

Case Overview

This appeal, Comp. App. (AT) (Ins) No. 2152 of 2026, along with an interim application (IA No. 8063 of 2026), was filed by Saavi Rajpal (Appellant) against Toyota Financial Services India Ltd. & Anr. (Respondents). The appeal challenges an order passed by the Adjudicating Authority (NCLT) admitting a petition filed under Section 95 of the Insolvency and Bankruptcy Code, 2016 (IBC). The Appellant, represented by Sr. Advocate Gaurav Mitra, contended that the petition under Section 95 was admitted without sufficient evidence. The primary arguments were that no documents were enclosed before the NCLT to prove the advancement of any facility to the principal borrower, and the document provided showed an amount advanced was "much below the required threshold." It was further argued that the report submitted by the Resolution Professional (RP) under Section 99 of the IBC was "vague and ambiguous" and, even if taken on record, did not justify the passing of the impugned order. The Appellant submitted that with no prima facie material before the NCLT to accept the petition, being put through the hardship of submitting a repayment plan was unnecessary.

Final Outcome

The NCLAT bench, comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical), found that the matter requires consideration. The tribunal issued notice to the respondents in the main appeal and the stay application (IA No. 8061 of 2026) via all possible means, including Dasti (by hand). The appellant was directed to complete all necessary steps along with process fees within three working days. The appeal has been listed for the next hearing on December 3, 2026, under the caption 'For Admission (After Notice)'. Critically, the NCLAT ordered that any further proceedings under the impugned NCLT order would be subject to the final outcome of this appeal, effectively staying further action until the matter is decided.

Topics: Insolvency Appeal, Section 95 IBC, NCLAT Procedure