Case Note & Summary
The appeal was filed by the financial creditor, Indian Bank (Erstwhile Allahabad Bank), seeking to expunge certain remarks made by the Adjudicating Authority regarding its conduct in filing an affidavit. The appellant, as the sole financial creditor and member of the Committee of Creditors (COC), had previously moved an application to replace the resolution professional. During the pendency of this application, the appellant filed a lengthy affidavit which the Adjudicating Authority deemed unnecessary and not bona fide. The remarks made by the Adjudicating Authority were challenged in this appeal. The court analyzed whether the comments regarding the appellant's conduct were warranted and noted that a simpler affidavit would have sufficed. The court ultimately decided to expunge the remarks made by the Adjudicating Authority and directed that the hearing of the Corporate Insolvency Resolution Process (CIRP) proceedings be expedited. The appeal was disposed of accordingly, with pending applications also standing disposed of.
Headnote
A) Company Law - Affidavit Compliance - Bona Fide Conduct - Insolvency and Bankruptcy Code, 2016 - The Adjudicating Authority's remarks on the appellant's affidavit being not bona fide were expunged as the court found that a simpler affidavit would have sufficed, indicating overzealousness rather than bad faith. The court directed the Adjudicating Authority to expedite the hearing of the CIRP proceedings (Paras 4).
Issue of Consideration
Whether the Adjudicating Authority should have used the expression regarding the appellant's conduct in filing a long affidavit as not bona fide.
Final Decision
The court expunged the remarks made by the Adjudicating Authority regarding the appellant's affidavit and directed the Adjudicating Authority to expedite the hearing of the CIRP proceedings. The appeal was disposed of along with any pending applications.
Law Points
- Affidavit compliance
- bona fide conduct
- expungement of remarks
- CIRP proceedings
Case Details
2026 LawText (NCLAT) (07) 60
Company Appeal (AT) (Ins) No.1167 of 2026
Justice N. Seshasayee, Barun Mitra
Mr. Rajesh Kumar Gautam, Mr. Anant Gautam, Mr. Vibhu Sharma, Mrs. Likivi K. Jakhadu, Ms. Azal Ackram, Mr. Rishi Chauhan, Mr. Gopal Jain, Mr. Abhishek Anand, Mr. Karan Kohli, Ms. Palak Kalra, Ms. Manuj Nagrath
Indian Bank (Erstwhile Allahabad Bank)
Nimitaya Hotels & Resorts Ltd.
Subscribe to unlock Case Details (Citation, Judge, Date & more)
Subscribe Now
Nature of Litigation
Appeal against remarks made by the Adjudicating Authority regarding the appellant's affidavit.
Remedy Sought
The appellant sought to expunge certain remarks made against it.
Filing Reason
The appellant filed the appeal to challenge the Adjudicating Authority's comments on its affidavit.
Previous Decisions
The Adjudicating Authority had previously made remarks regarding the affidavit filed by the appellant.
Issues
Whether the Adjudicating Authority's remarks on the appellant's affidavit were justified
Whether the court should expunge the remarks made by the Adjudicating Authority
Submissions/Arguments
The appellant argued that the remarks were unwarranted and detrimental to its reputation.
The respondent contended that the affidavit was unnecessarily lengthy and not in compliance.
Ratio Decidendi
The court held that the remarks regarding the appellant's conduct in filing a lengthy affidavit were not justified and emphasized the need for a more magnanimous approach in legal proceedings.
Judgment Excerpts
We are constrained to observe that filing of this kind of affidavit in the name of compliance of the Court's order prima facie does not appear to be bonafide.
We therefore only expunge the expression: 'We are constrained to observe that filing of this kind of affidavit in the name of compliance of the Court's order prima facie does not appear to be bonafide.'
Procedural History
The appellant filed an application in I.A. 5980 of 2025 in December 2025, followed by a resolution to replace the resolution professional in the COC meeting on 11.02.2026. The appellant then filed I.A. No.1222 of 2026, leading to the Adjudicating Authority's remarks which are now under appeal.
Acts & Sections
- Insolvency and Bankruptcy Code:
