Case Note & Summary
The appeal was filed by Rajeev Bakshi against an order dated 16.02.2026, where the Adjudicating Authority dismissed his Section 7 application under the Insolvency and Bankruptcy Code, 2016, and imposed costs of Rs. 5,00,000. The dispute arose in the context of a pending civil suit in the Hon’ble Delhi High Court concerning the inheritance of assets belonging to Late Mrs. Pramila Bakshi. The Adjudicating Authority determined that since the rights and entitlements of the applicant were under consideration in the civil suit, the Section 7 application was not maintainable. The Tribunal found no error in this decision and upheld the dismissal of the application, but reduced the costs to Rs. 50,000. Consequently, the appeal was dismissed subject to the revised costs.
Headnote
A) Company Law - Maintainability of Section 7 Application - Dismissal of Application - Insolvency and Bankruptcy Code, 2016, Section 7 - The Adjudicating Authority dismissed the Section 7 application on grounds of maintainability due to a pending civil suit concerning the inheritance of assets. The Tribunal upheld the dismissal but reduced the imposed costs from Rs. 5,00,000 to Rs. 50,000, finding no error in the Adjudicating Authority's reasoning (Paras 1-2).
Issue of Consideration
Whether the Section 7 application is maintainable given the pending civil suit regarding inheritance.
Final Decision
The Tribunal dismissed the appeal against the dismissal of the Section 7 application, reducing the costs from Rs. 5,00,000 to Rs. 50,000.
Law Points
- Maintainability of application
- Pending civil suit
- Inheritance of assets
Case Details
2026 LawText (NCLAT) (05) 104
Comp. App. (AT) (Ins) No. 599 of 2026
Justice Ashok Bhushan, Indevar Pandey
Mr. Rajeev Bakshi, Mr. Mohit Choudhary, Mr. Harsh Agarwal
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Nature of Litigation
Appeal against dismissal of Section 7 application under the Insolvency and Bankruptcy Code.
Remedy Sought
Rajeev Bakshi sought to challenge the dismissal of his application.
Filing Reason
The application was dismissed due to a pending civil suit regarding inheritance.
Previous Decisions
The Adjudicating Authority had dismissed the application and imposed costs.
Issues
Maintainability of Section 7 application
Impact of pending civil suit on insolvency proceedings
Submissions/Arguments
The appellant argued for the maintainability of the Section 7 application.
The respondent contended that the pending civil suit rendered the application not maintainable.
Ratio Decidendi
The Tribunal upheld the Adjudicating Authority's decision that a pending civil suit regarding inheritance affects the maintainability of a Section 7 application under the Insolvency and Bankruptcy Code.
Judgment Excerpts
The Adjudicating Authority took the view that when the right and entitlement of applicant is already pending consideration before the Hon’ble Delhi High Court, the Section 7 application at the instance of the Appellant is not maintainable.
We do not find any error in the order of the Adjudicating Authority dismissing the Section 7 application.
Procedural History
The appeal was filed against the order of the Adjudicating Authority which dismissed the Section 7 application and imposed costs.
Acts & Sections
- Insolvency and Bankruptcy Code: Section 7
