Pragiti Construction Vs Committee of Creditor Represented by Mahavir Medicare & Anr (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT) decided Interlocutory Applications Nos. 2480 and 2481 of 2026 filed by the erstwhile Resolution Professional of Rancom Healthcare Pvt. Ltd. seeking expungement of adverse observations and consequential directions recorded against him in paragraph 99 of the Tribunal’s judgment dated 06.02.2026. The earlier judgment had arisen from appeals challenging orders approving the Resolution Plan submitted by Mahavir Medicare while rejecting the competing Resolution Plan of Pragiti Construction. In that judgment, the NCLAT had set aside the approved Resolution Plan, directed liquidation of the Corporate Debtor, and made adverse observations against the Resolution Professional concerning the conduct of the Corporate Insolvency Resolution Process (CIRP). The applicant challenged only those observations before the Supreme Court, which declined to interfere with the judgment but granted liberty to approach the NCLAT for expungement of the remarks.
The CIRP had commenced pursuant to an order under Section 9 of the Insolvency and Bankruptcy Code, 2016. As no Financial Creditor submitted any claim, the Committee of Creditors (CoC) was constituted solely with Mahavir Medicare, the only Operational Creditor, under Section 21 of the Code read with Regulation 16 of the CIRP Regulations. Mahavir Medicare’s Resolution Plan was approved by the sole-member CoC, whereas the Resolution Plan submitted later by Pragiti Construction was not considered initially. After the Adjudicating Authority directed fresh consideration of Pragiti Construction’s Resolution Plan, the Resolution Professional convened the 6th CoC meeting. Ultimately, the sole CoC member rejected Pragiti Construction’s plan, the Adjudicating Authority approved Mahavir Medicare’s Resolution Plan under Section 31, and those orders were subsequently set aside by the NCLAT in its judgment dated 06.02.2026.
