NCLAT adjourns insolvency appeal to 16.11.2026; interim order continues, operational creditor plea closed

NCLAT order copy received in the BGR Energy insolvency appeal.

Thu 1 Oct 2026

NCLAT Order Date

28.09.2026

Appeal Number

Company Appeal (AT) (CH) (Ins) No. 252/2026

Operational Creditor Claim

approximately ₹ 4.73 crores

Next Hearing Date

16.11.2026 at 12 PM

Notes of Submission Deadline

09.10.2026

What the company told the exchanges

• The company has received the copy of the NCLAT order dated 28.09.2026 in Company Appeal (AT) (CH) (Ins) No. 252/2026, connected with the suspension of NCLT order No. CP (IB)/58/7/AMR/2024.
• The appeal is by Arjun Govind Raghupathy, suspended director of the company, against National Asset Reconstruction Company Ltd and another.

What the order records

• Counsel for the suspended director submitted that the default complained of by the financial creditor vis-a-vis the debt in question has been amicably settled, and that the settlement has to be formalised through proper and appropriate documentation.
• He also submitted that even though the matter has been settled with the financial creditor, the proceeding has now assumed the character of a proceeding in rem, and he intends to argue the matter on merits.

The operational creditor

• A proposed intervenor shared IA No. 1420/2026, contending that the corporate debtor owes it approximately ₹ 4.73 crores for non-payment.
• That creditor had instituted a petition under Section 9, which came to be dismissed in view of an NCLT order by which the appellant was drawn into CIRP. The appellant would now settle with that petitioner, following which the order initiating the CIRP was set at nought.
• The matter was taken to the Andhra Pradesh High Court, where a stay was in force for about 20 months before it was vacated on 24.06.2026.
• The intervenor submitted that because of the present appeal, the Adjudicating Authority is reluctant to go ahead with its application and has not passed final orders in the Section 9 petition. The tribunal closed IA No. 1420/2026.

The two outcomes set out by the tribunal

• If the appellant succeeds on merit, the intervenor has to pursue its matter before the Adjudicating Authority, which will be free of any fetters in pronouncing its final orders in the Section 9 petition.
• If the tribunal does not find any merit in the appeal, the CIRP of the corporate debtor will kickstart, during which the intervenor may prefer its claim. The tribunal observed that no right of the intervenor is now in peril.

What happens next

• Both sides must submit their pointed notes of submission latest by 09.10.2026.
• The appeal is listed on 16.11.2026 at 12 PM.
• Till the next date of hearing, the earlier interim order, if any, passed by the tribunal shall continue.

How to read this

The appeal is yet to be decided on merits. The order states that if the tribunal finds no merit in the appeal, the CIRP of the company will kickstart. The statement that the financial creditor default has been amicably settled was made by counsel before the tribunal, with formal documentation to follow.

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