Case Note & Summary
The appeal was filed by Mrs. Varsha Patel, a suspended director of CMT Mechanised System Pvt. Ltd, against an order dated 25.06.2026 from the NCLT Ahmedabad Bench, which admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC) and initiated the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor. The appellant's counsel argued that they had consistently proposed a settlement with the operational creditor and had submitted a repayment plan, which was rejected by the operational creditor. The petition under Section 9 had previously been dismissed in default for non-prosecution but was restored at the appellant's request. The appellant claimed to have paid Rs. 65 lakh to the operational creditor and expressed willingness to deposit the remaining amount in an interest-bearing fixed deposit. The appellant sought to file an application under Section 12A of the IBC to facilitate settlement. The court found it appropriate to modify the order to prevent the publication of Form G by the Committee of Creditors until the application under Section 12A was disposed of, allowing the appellant four weeks to file the application. The appeal was thus disposed of, along with pending applications.
Headnote
A) Insolvency Law - Corporate Insolvency Resolution Process - Modification of Order - Insolvency and Bankruptcy Code, 2016, Section 12A - The appellant sought to modify the order to prevent publication of Form G until the application under Section 12A is disposed of. The court found it appropriate to allow the appellant to file the application within four weeks and modified the order accordingly. Held that the modification was necessary to facilitate settlement discussions (Paras 4-5).
Issue of Consideration
Whether the order dated 30.06.2026 should be modified to allow the appellant to file an application under Section 12A of the IBC.
Final Decision
The court modified the order dated 30.06.2026 to prevent the publication of Form G until the application under Section 12A is disposed of, allowing the appellant four weeks to file the application.
Law Points
- Corporate Insolvency Resolution Process
- Section 9
- Section 12A
- repayment plan
- operational creditor
