Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi
Order Date: 13 July 2026
Case Overview
This application (I.A. No. 159 of 2025) was filed in Company Appeal (AT) (Insolvency) No. 662 of 2024 by Topworth Urja & Metals Ltd. through its Resolution Professional Avil Menezes against the Directorate of Industries, Government of Maharashtra. The application seeks enforcement of the NCLAT's final order/judgment dated 04 September 2024.
The dispute concerns investment subsidy amounts receivable by the corporate debtor (Topworth Urja) that were improperly disbursed by the respondent to the Sales Tax Department instead of being paid to the corporate debtor during the Corporate Insolvency Resolution Process (CIRP). The CIRP against Topworth Urja commenced on 12 August 2022.
The applicant submitted that according to the NCLAT's order dated 08 April 2024, any amount receivable by the corporate debtor during CIRP must be disbursed according to the resolution plan as these constitute assets of the corporate debtor. Specifically, the respondent disbursed Rs. 6,82,77,604/- to the Commissioner of Sales Tax Department as detailed in paragraph 4 of the application. Additionally, during the pendency of the company appeal, the respondents made a further payment of Rs. 1,89,47,132/- to the Sales Tax Department, with relevant challans filed as evidence.
The NCLAT's order dated 04 September 2024 had partly allowed the appeal and set aside the direction contained in paragraph 5.3 that required the Principal Secretary, Directorate of Industries to pay the investment subsidy within 30 days according to the disbursal advice to Government Authorities. Instead, the Tribunal directed that any amount not yet paid to the corporate debtor be paid to the corporate debtor within the time allowed by the Adjudicating Authority.
Final Outcome
The respondent (Directorate of Industries, Govt. of Maharashtra) was served but did not appear in the proceedings. The appellant was permitted to serve the Resident Commissioner of the State of Maharashtra stationed at Delhi vide order dated 12 December 2025, and while the Resident Commissioner was served, no appearance was made. The NCLAT has directed the filing of an affidavit regarding service to the Resident Commissioner along with a list of assets of the respondent to enable further proceedings. The matter has been listed for next hearing on 19 August 2026.
Topics: Insolvency Proceedings, Government Subsidy Dispute