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 & Metals Ltd.) during its Corporate Insolvency Resolution Process (CIRP), which commenced on 12 August 2022. The appellant alleges that despite the NCLAT's order, the respondent (Directorate of Industries) improperly disbursed subsidy amounts to the Sales Tax Department instead of to the corporate debtor as required.

According to the application, the respondent disbursed Rs. 6,82,77,604 to the Commissioner of Sales Tax Department, with details provided in paragraph 4 of the application. Additionally, during the pendency of the company appeal, the respondent allegedly made further payments 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 specifically set aside the direction contained in paragraph 5.3 of the earlier order that required payment of investment subsidy to government authorities. The Tribunal held that after CIRP commencement, all amounts payable to the corporate debtor must be paid to the corporate debtor and disbursed according to the resolution plan approved by the Committee of Creditors.

Final Outcome

The application was not decided on merits at this hearing. The respondent, despite being served through multiple channels including the Resident Commissioner of the State of Maharashtra stationed at Delhi (as permitted by order dated 12 December 2025), failed to appear. The Tribunal directed the appellant to file an affidavit regarding service to the Resident Commissioner along with a list of assets of the respondent. The matter has been adjourned and listed for further hearing on 19 August 2026.

Topics: NCLAT, Subsidy Dispute, Enforcement Application