Authority: Supreme Court of India

Order Date: 13 August 2026

Case Overview

  • Parties: Appellant – Orbis Trusteeship Services Private Limited & Anr.; Respondent – Harvinder Singh Sikka & Ors. Additional respondents impleaded: Kindle Infraheights Private Limited, Campbell Advertising Private Limited, Gurinder Singh Sikka, Gurneet Singh Sikka, Kusham Kaur.
  • Nature of Proceeding: Civil Appeal No. 3359/2026 arising from a judgment dated 25‑02‑2026 of the NCLAT in Company Appeal (AT) (Insolvency) No. 256 of 2026 concerning the insolvency of Kindle Infraheights and Nobal Buildtech.
  • Background: The parties, including financial creditors, the resolution professionals (RP), and the suspended management/promoters of Kindle and Nobal, negotiated a composite settlement to resolve debenture liabilities and related disputes.
  • Key Settlement Documents:
  • Settlement Proposal dated 18‑07‑2026 and draft Settlement Deed approved by the Committee of Creditors (CoC) of Nobal (100% voting share).
  • Settlement Deed dated 03‑08‑2026 executed between Nobal, its suspended management/promoters, and Campbell Advertising.
  • Bilateral Settlement Proposal dated 20‑07‑2026 and Settlement Deed dated 03‑08‑2026 between Orbis and the suspended management/promoters of Kindle, covering Kindle’s debenture liability with a payment schedule aggregating Rs 139.50 crores (conditionally approved in principle).
  • Undertakings: Unconditional undertakings furnished by Harvinder Singh Sikka, Gurinder Singh Sikka, Gurneet Singh Sikka and Kusham Kaur to be bound by the composite settlement and to comply punctually; breach to be actionable as contempt of court.

Final Outcome

1. Impleadment: IA No. 228761/2026 allowed; Kindle Infraheights, Campbell Advertising and the Sikka family members are now respondents Nos. 5‑9; cause title amended.

2. Settlement Endorsement: IA No. 232741/2026 accepted; the Court approved the composite settlement and ordered the appeal to stand disposed of.

3. Withdrawal of CIRP: Under Article 142, the Court directed withdrawal of the Corporate Insolvency Resolution Process (CIRP) for both Nobal (CP (IB) No. 143/ND/2022) and Kindle (CP (IB) No. 541/ND/2022), subject to fulfillment of settlement steps; the Resolution Professionals (RP) to be discharged and board powers restored.

4. Cost Allocation: All costs of the CIRP for Nobal and Kindle to be borne by the suspended management of the respective companies; demand draft or bank guarantee to be furnished within one week of the order.

5. Monitoring & Enforcement:

  • The common RP for Kindle and Nobal to cooperate fully and file necessary applications before the NCLT/NCLAT to give effect to the Court’s directions.
  • Implementation of the settlement to be monitored by the Court or, alternatively, by the NCLT (for Nobal) / NCLAT (for Kindle).
  • Until payment of the NCD settlement amount is completed or a default is adjudicated, no party may initiate enforcement, execution, sale, attachment, or any coercive step against Kindle, Nobal, the personal guarantors, the mortgaged plot, or personal assets, except as permitted by the settlement or further Court orders.

6. Liberty to Revive CIRP: The parties (Campbell, Appellants, RP) retain liberty to seek revival of the CIRP before the NCLT in case of default under the settlement, without prejudice to rights over the mortgaged plot and other securities.

7. Other Directions: The Court directed the RP/IRP to monitor compliance with cost payment, to report defaults, and to treat actions taken under these directions as discharge of statutory duties.

8. Disposition of Pending Applications: All pending applications, if any, stand disposed of.

Topics: Settlement Approval, Insolvency Resolution, Corporate Governance