Authority: National Company Law Appellate Tribunal Principal Bench, New Delhi

Order Date: November 5, 2026

Case Overview

The appeal (Comp. App. (AT) (Ins) No. 2153 of 2026) was filed by Vidhi Rajpal against Toyota Financial Services India Ltd. and another respondent, challenging an order from the Adjudicating Authority (NCLT) that admitted a petition under Section 95 of the Insolvency and Bankruptcy Code, 2016. The appellant, represented by Senior Advocate Gaurav Mitra, raised three principal objections: (1) no documents were presented to the Adjudicating Authority showing advancement of any facility to the principal borrower, (2) the only document enclosed showed advancement of an amount "much below the required threshold" for initiating insolvency proceedings, and (3) the report submitted by the Resolution Professional under Section 99 of the Code was "vague and ambiguous" and insufficient basis for passing the impugned order.

The appellant argued that since there was prima facie no material before the Adjudicating Authority to accept the Section 95 petition, requiring the appellant to submit a repayment plan would cause unnecessary hardship.

Final Outcome

The NCLAT bench comprising Justice Mohammad Faiz Alam Khan (Member-Judicial) and Naresh Salecha (Member-Technical) found that the matter requires consideration and admitted the appeal for hearing. The tribunal issued notice to the respondents in both the main appeal and the connected stay application (IA No. 8066 of 2026) through all possible means including Dasti by hand. The appellant was directed to complete all procedural steps including payment of process fees within 3 working days. The matter was listed for next hearing on December 3, 2026 under the caption 'For Admission (After Notice)'. Crucially, the tribunal ordered that any further proceedings under the impugned NCLT order would be subject to the final disposal of this appeal, effectively providing interim protection to the appellant until the next hearing.

Topics: NCLAT Appeal, Insolvency Proceedings, Section 95 Challenge