Case Law Details
Sameer Nagpal Vs ISITVA Steel Pvt. Ltd. & Anr. (NCLAT Delhi)
The National Company Law Appellate Tribunal (NCLAT), Delhi, disposed of an appeal against the order dated 12.06.2026 passed by the NCLT, Kolkata-I Bench in C.P. (IB) No. 87/KB/2025 admitting a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016.
The appellant contended that the Section 9 petition ought not to have been admitted since the amount of the claim was below ₹1 crore and, in view of Section 4 of the Insolvency and Bankruptcy Code, 2016, the petition was not maintainable. Counsel for the respondent fairly admitted that the overall debt was less than ₹1 crore. In view of the submissions made by both sides and the admitted position regarding the amount due, the NCLAT set aside the admission order dated 12.06.2026.
The Tribunal further directed that the amount of ₹91,98,556 deposited by the appellant pursuant to its order dated 24.06.2026 be refunded to the appellant after due verification and in accordance with law. It also observed that any settlement between the parties could be adverted to. The appeal was disposed of and pending applications, if any, were closed.
The order also records earlier proceedings in the appeal. The appellant had submitted that, without prejudice to its rights and despite having a good case on merits, it was willing to deposit ₹91,98,556 to demonstrate bona fides. It was stated that the parties had earlier entered into a settlement under which ₹4,60,49,000 was agreed as full and final settlement, out of which ₹4,14,00,000 had already been paid. It was further submitted that an additional ₹70 lakh had been paid and that an email dated 04.02.2023 from the Operational Creditor acknowledged the remaining liability at ₹91,98,556.
The appellant proposed to deposit the amount through a demand draft in favour of the Pay and Accounts Officer, Ministry of Corporate Affairs, New Delhi. Counsel for the respondents raised no objection to the deposit and submitted that the amount represented the full and final settlement of the Operational Creditor’s claim as reflected in the application before the Adjudicating Authority.
The appellant also submitted that it was a listed company with a market capitalisation of approximately ₹9,000 crore, revenue exceeding ₹4,800 crore and approximately 3,500 employees, and requested stay of the impugned order. Reliance was placed on the NCLAT order dated 12.05.2026 in Nishant Avinash Fadia vs. Raspalfa Services Private Limited & Anr., which, according to the submission, had not been interfered with by the Supreme Court in Civil Appeal No. 7946 of 2026. Considering the facts and circumstances, the NCLAT had stayed the NCLT order dated 12.06.2026, permitted filing of replies, directed deposit of ₹91,98,556, and listed the matter for 29.06.2026. Subsequently, upon recording the parties’ submissions that the admitted debt was below ₹1 crore, the Tribunal set aside the admission order and disposed of the appeal.
Cases Discussed
- Sameer Nagpal Vs. ISITVA Steel Pvt. Ltd. & Anr. (NCLAT Delhi)
- Nishant Avinash Fadia vs. Raspalfa Services Private Limited & Anr., Comp. App. (AT) (Ins.) No. 850 of 2026, order dated 12.05.2026.
- Civil Appeal No. 7946 of 2026 (as referred to in the order).
FULL TEXT OF THE NCLAT JUDGMENT/ORDER
This appeal is directed against an impugned order dated 12.06.2026, passed by the Ld. NCLT, Kolkata-I, bench in C.P. (IB) No. 87/KB/2025 M/s Isitva Steels Private Limited vs. M/s Vikram Solar Limited.
It is submitted by the Ld. Sr. Counsel appearing for the Appellant the main contention raised in the present Appeal is the petition under Section 9 ought not to have been admitted at the outset, as the amount of the claim was less than Rs. 1 crore and in view of Section 4 of the Insolvency and Bankruptcy Code, 2016, the petition ought not to have been admitted.
The Ld. Sr. Counsel appearing for the Respondent is also present and fairly admits the overall debt was less than Rs. 1 crore. In these circumstances, the Ld. Sr. Counsel for both side agree the order of admission passed by Ld. Adjudicating Authority vide impugned order needs to be set aside.
Taking the submissions of both the Ld. Counsels on record, and since it is admitted case that the due amount was less than Rs. 1 crore; the admission order dated 12.06.2026, stands set aside.
Consequently, the amount of Rs. 91,98,556/- deposited by the Appellant pursuant to an order dated 24.06.2026, shall be refunded to the Appellant after due verification and in accordance with law. The settlement, if any, can be adverted to between the parties.
Appeal stands disposed of. Pending applications, if any, also stands closed.
Heard Dr. A.M. Singhavi as well as Mr. Abhijeet Sinha, Ld. Sr. Counsels appearing for the appellant as well as Ld. Counsels appearing for Respondents No.1 & 2 and perused the record.
2. Ld. Sr. Counsel appearing for the appellant submits that though the appellant is having a very good case on merits but without prejudice to his rights he is ready to deposit Rs. 91 lakhs to show bonafide of the appellant. It is further submitted that earlier the parties have entered into a settlement whereby the earlier contract was preceded and in full and final settlement the parties had agreed to pay/ receive Rs. 4,60,49,000/- and out of this amount Rs. 4,14,00,000/- were already paid.
3. It is further submitted that thereafter Rs. 70 lakhs were again paid to the Operational Creditor and in this regard an email dated 04.02.2023 was also sent by the Operational Creditor whereby they have acknowledged the liability of only Rs. 91,98,556/-.
4. It is submitted that the appellant is ready to deposit Rs. 91,98,556/-by way of demand draft in favour of Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi.
5. Ld. Counsel appearing for the Respondent No.1 & 2 have not shown objection so far as the deposition of the amount of Rs. 91,98,556/- is concerned.
6. It is also submitted by Ld. Counsel for Respondent No.1 that the amount of Rs. 91,98,556/- which would be deposited by the appellant through the demand draft would be for the full and final settlement of the claim of the Operational Creditor as is shown in the application moved before the Ld. Adjudicating Authority.
7. It is further submitted that the Appellant is a listed company with a market capitalisation of approximately Rs. 9,000 Crores, and generating a revenue in excess of Rs. 4,800 Crores, and approximately a workforce of 3,500 employees is existing on its payrolls, thus, the initiation of insolvency would have a bad impact not only on the financial aspect of the company but will also cast shadow on its otherwise good financial reputation. It is thus requested that the impugned order be stayed.
8. Ld. Counsel appearing for Respondents No.1 & 2 is not having any objection to the request made by Ld. Sr. Counsel appearing for the appellant on the score that the whole admitted amount as claimed by the Operational Creditor is being deposited by the appellant through demand draft of Rs.91,98,556/-.
9. Sr. Counsels appearing for the appellant has also brought in our knowledge an order of this appellate tribunal dated 12.05.2026 passed in Comp. App. (AT) (Ins.) No. 850 of 2026 in ‘Nishant Avinash Fadia vs. Raspalfa Services Private Limited & Anr.’ whereby the impugned order therein was stayed in similar circumstances and it is submitted that this interim order was challenged by filing an appeal before the Hon’ble Supreme Court in Civil Appeal No. 7946 of 2026 and the said order has not been interfered by the Hon’ble Supreme Court.
10. Keeping in view all the facts and circumstances of this case and having an eye on the order passed in ‘Nishant Avinash Fadia vs. Raspalfa Services Private Limited & Anr.’ which has been affirmed by the Hon’ble Supreme Court, we direct that the impugned order dated 12.06.2026 passed by Ld. NCLT Kolkata-I bench shall remain stayed till the next date of listing.
11. Ld. Counsel for the parties if so wish may file their reply/short reply till the next date of listing.
12. Appellant shall deposit demand draft of Rs. 91,98,556/- in favour of Pay and Accounts Officer, Ministry of Corporate Affairs, New Delhi till the next date of listing.
13. List this matter on 29.06.2026 under the same caption before the appropriate bench.
Author Bio
