Ayra Consortium's Appeal Dismissed as Premature, Intervention Rights Preserved for Future Stages
In a significant judgment, the National Company Law Appellate Tribunal (NCLAT), Chennai Bench, has dismissed an appeal filed by Ayra Consortium against the National Company Law Tribunal's (NCLT) order to remit a resolution plan back to the Committee of Creditors (CoC) for reconsideration. The appeal was deemed premature as the NCLT had not yet made a merits-based adjudication on the matter. The judgment, delivered on June 15, 2026, emphasizes the procedural aspects of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016.
Ayra Consortium, the prospective resolution applicant, challenged the NCLT's decision, alleging non-compliance with the Insolvency and Bankruptcy Code (I&B Code) and Corporate Insolvency Resolution Process (CIRP) Regulations in the resolution plan submitted for M/s. Amar Prakaash Developers Private Limited. The NCLT had identified multiple deficiencies in the resolution plan, including unpaid CIRP costs, absence of performance security, non-furnishing of required declarations, and unequal treatment of creditors without justification.
The NCLAT bench, comprising Mr. Justice Sharad Kumar Sharma and Mr. Jatindranath Swain, noted that the appellant’s intervention rights remain preserved, allowing them to participate in future proceedings once the CoC resubmits the revised plan. The tribunal emphasized that no immediate prejudice was caused to the appellant, as the resolution plan is yet to be adjudicated on its merits.
The judgment underscores the importance of compliance with statutory requirements in resolution plans and the role of CoC in ensuring adherence to the I&B Code and CIRP regulations. It also highlights the procedural safeguards available to prospective resolution applicants, ensuring their rights are not prejudiced during the insolvency resolution process.
This decision is pivotal in reinforcing the procedural framework of insolvency proceedings and ensuring that resolution plans are thoroughly scrutinized for compliance with statutory provisions. The NCLAT’s ruling sets a precedent for future cases, emphasizing the need for meticulous adherence to the insolvency framework and the role of appellate tribunals in maintaining procedural integrity.
Bottom line:-
Appeal against the NCLT's order remitting the resolution plan back to the CoC for reconsideration was dismissed as premature since no merits-based adjudication had occurred and the Appellant's intervention rights were preserved for later stages.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 30, 31, 61; CIRP Regulations 34B, 36B, 38, 39
Ayra Consortium v. Trupro Insolvency Services LLP, (NCLAT)(Chennai) : Law Finder Doc id # 2938090
