Authority: High Court of Karnataka, Bengaluru

Order Date: 03 November 2026

Case Overview

  • Petition No. 30901 of 2024 filed by Shree Basaveshwar Sugars Ltd (petitioner) under Articles 226/227 of the Constitution, challenging NCLT Bengaluru order dated 14 Nov 2024 that restored CP(IB) No.37/BB/2022.
  • The dispute arose from a corporate insolvency resolution process (CIRP) initiated by Indian Renewable Energy Development Agency Ltd (IREDA) under Section 7 IBC, case CP(IB) No.37/BB/2022, concerning a debt of INR 178,25,23,894.
  • Petitioner proposed an OTS settlement of INR 117,35,25,151, accepted by IREDA via sanction letter dated 17 Nov 2023.
  • NCLT admitted petitioner into CIRP on 10 Jan 2024 and appointed an IRP; simultaneously Canara Bank filed a separate IBC petition, leading NCLT on 11 Jan 2024 to allow the respondent (IREDA) to file its claim in CP(IB) No.117/BB/2023.
  • Petitioner and Canara Bank later settled the OTS, resulting in withdrawal of the Canara Bank CIRP on 16 Feb 2024, which prevented IREDA from filing its claim in the latter proceeding.
  • IREDA filed IA (Res) No.8 of 2024 on 06 Aug 2024 seeking revival of CP(IB) No.37/BB/2022 under Section 60(5) & Rule 11 NCLT Rules; NCLT restored the case and listed it for hearing on 20 Nov 2024.
  • High Court stayed the NCLT order on 19 Nov 2024; IREDA subsequently applied for vacation of the stay, arguing the writ petition is non‑maintainable because an appeal under Section 61 IBC is available.
  • Petitioner contended that the existence of an alternative remedy does not preclude the High Court’s jurisdiction where the statutory order is ultra vires, citing Supreme Court precedents (Embassy Property Developments, Budhia Swain).
  • Both parties presented extensive submissions on jurisdiction, the legality of the NCLT’s revival order, and the pending OTS request (documents to be furnished by petitioner).

Final Outcome

  • The writ petition is dismissed.
  • Petitioner may file a statutory appeal before the NCLAT under Section 61 of the IBC.
  • Petitioner may seek exclusion of the period spent before this Court by filing an application under Section 14 of the Limitation Act.
  • The interim stay dated 19 Nov 2024 is extended for an additional three weeks to enable the petitioner to approach NCLAT.
  • No direction is issued on the OTS request; parties may submit required documents, and all contentions remain open.
  • Observations in this order are limited to disposal of the writ petition and will not affect any future NCLAT proceedings.

Topics: Insolvency, Court Order