Case Note & Summary
The National Company Law Appellate Tribunal addressed two connected appeals concerning insolvency proceedings involving HDFC Bank Ltd. and Sasmita Rani Samanta, the suspended director of Sustainable Outreach and Universal Leadership (SOUL) Ltd. Both appeals arose from an order dated 21.08.2026, which allowed Kalinga Institute of Industrial Technology (KIIT) to intervene as an operational creditor in the ongoing insolvency proceedings. The Appellant in the first appeal, HDFC Bank, sought directions for the timely disposal of its application under Section 12A of the Insolvency and Bankruptcy Code, 2016, following a settlement with the Corporate Debtor. The second Appellant, Sasmita Rani Samanta, raised similar concerns regarding delays caused by the intervention of KIIT, which had filed a claim against the Corporate Debtor. The Tribunal noted that the operational creditor's claim had been partially admitted, thus justifying its intervention. The Tribunal highlighted the recent amendment to Section 12A, mandating the Adjudicating Authority to decide applications within thirty days, and emphasized the importance of facilitating amicable settlements. The Tribunal directed the Adjudicating Authority to expedite the proceedings and set a timeline for the exchange of pleadings and decision-making, while also clarifying that no adjournments would be entertained during this process. The Tribunal's decision aimed to ensure that the insolvency proceedings progressed without unnecessary delays, respecting the parties' settlements while adhering to legal provisions.
Headnote
A) Insolvency Law - Section 12A Application - Timely Disposal - Insolvency and Bankruptcy Code, 2016, Section 12A - The Appellants expressed grievances regarding the delay in the disposal of the application under Section 12A despite an amicable settlement. The Tribunal directed the Adjudicating Authority to decide the application within thirty days, emphasizing the need for expediency in such matters (Paras 11-13).
Issue of Consideration
Whether the Adjudicating Authority should expedite the disposal of applications under Section 12A of the Insolvency and Bankruptcy Code, 2016.
Final Decision
The Tribunal directed the Adjudicating Authority to decide the application under Section 12A within thirty days, emphasizing the need for expediency and cooperation from the operational creditor. The interim order was to remain in effect until the application was disposed of, and no adjournments were to be granted during the proceedings.
Law Points
- Insolvency proceedings
- Section 12A application
- intervention by operational creditor
- timely disposal of applications
- amicable settlement facilitation
