Udit Harish Seth Vs Bank of Baroda & Anr (NCLAT Delhi)
In a significant development, the National Company Law Appellate Tribunal (NCLAT) Delhi has permitted the withdrawal of Corporate Insolvency Resolution Process (CIRP) proceedings against M/s SE Transstadia Pvt. Ltd., acknowledging a government-backed revival plan and the consensus among financial creditors. The decision, stemming from appeals filed by the company’s suspended directors, Udit Harish Seth, on May 22, 2025, effectively halts the insolvency process initiated by the Bank of Baroda.
The case, documented as CA (AT) (Ins) Nos. 716 & 717 of 2024, challenged an April 8, 2024, order from the Adjudicating Authority that admitted Bank of Baroda’s Section 7 application under the Insolvency and Bankruptcy Code, 2016, leading to the commencement of CIRP against SE Transstadia Pvt. Ltd. The appellants argued that the Government of Gujarat intended to infuse funds into the corporate debtor, and an One Time Settlement (OTS) proposal of Rs. 108 Crores had already been submitted to the Bank of Baroda.
During the initial hearing on April 12, 2024, the NCLAT granted an interim stay on the CIRP order, acknowledging the corporate debtor’s efforts to liquidate its debt and the recent submission of an OTS/Restructuring Proposal to the bank. The Bank of Baroda’s counsel informed the Tribunal that while the proposal was received, approval from all three financial creditors—Bank of Baroda, Bank of India, and Union Bank of India—would take time.
