Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 29.06.2026
Case Overview
This appeal was filed by Sanjaymama Vitthalrao Shinde against an order dated 13.03.2026 passed by the Adjudicating Authority, which admitted the Section 7 application filed by Union Bank of India under the Insolvency and Bankruptcy Code. The NCLAT had previously passed an interim order on 25.03.2026 staying the constitution of the Committee of Creditors (CoC). During proceedings, the appellant informed the Tribunal that a settlement had been reached with Union Bank of India (Financial Creditor) and that Solapur Cooperative Bank (another Financial Creditor) had no objections since the account was regular with them.
Final Outcome
The NCLAT disposed of the appeal with specific directions: (1) The interim order dated 25.03.2026 is modified to allow the IRP to constitute the CoC within one week; (2) The IRP must file an application under Section 12A for withdrawal of CIRP within one further week after CoC constitution; (3) The Adjudicating Authority should endeavor to dispose of the Section 12A application within 30 days from filing; (4) The IRP must obtain the vote of the CoC before filing the application but need not take any further steps in the CIRP process. The appeal was disposed of accordingly.
Topics: Insolvency Settlement, Section 12A Withdrawal, NCLAT Proceedings