Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 02 July 2026
Case Overview
The appeal (Comp. App. (AT) (Ins) No. 1138 of 2026) was filed by State Bank of India against Garden Court Distilleries Pvt. Ltd. & Anr. regarding an order from the Adjudicating Authority (NCLT). The NCLT had rejected SBI's Application IA (I.B.C.) 678/2026, which sought certain reliefs, concessions, and exemptions. SBI is the successful auction purchaser in the sale conducted by the liquidator of Garden Court Distilleries, having purchased the company as a going concern.
The NCLT rejected the application based on amendments made to the Liquidation Regulation 32 through an amendment dated 14 October 2025, which apparently restrict or prohibit the granting of such reliefs and concessions. SBI expressed apprehensions that the NCLT order might be interpreted as canceling their auction sale. However, the NCLAT clarified after perusing the impugned order that it was passed only on the specific application seeking reliefs and concessions and cannot be read as questioning or setting aside the sale in favor of SBI.
Final Outcome
The NCLAT has adjourned the matter for further scrutiny of the submissions. SBI is directed to file an affidavit within two weeks. All parties are permitted to file short notes of submission (not more than three pages) within one week. The appeal has been listed for hearing on 13 July 2026 as a fresh case along with Comp. App. (AT) (Ins) No. 1145 of 2026. The tribunal has not issued fresh notices as all parties have already appeared.
Topics: Insolvency Proceedings, Liquidation Regulation, Court Appeal