Case Note & Summary
The matter before the National Company Law Appellate Tribunal involved applications for substitution of parties in an insolvency appeal. The applicants, Prem Lata Yadav and another, sought to substitute Prudent ARC Ltd. in place of Rathi Tmt Saria Pvt. Ltd. as respondent No. 2, following the assignment of debt from Indian Overseas Bank (IOB) on 06.02.2026. The applications were filed under I.A. Nos. 1359 and 1360 of 2026. The Tribunal noted that the assignment of debt warranted the substitution and acknowledged the prior order of the National Company Law Tribunal (NCLT) regarding the reconstitution of the Committee of Creditors, which included Prudent ARC Ltd. The appellant's counsel argued for the continued presence of IOB as a respondent due to various assertions related to it. The Tribunal allowed the applications for substitution, clarifying that the appellant could refer to any material and pleadings on behalf of IOB in the case. The appeals were scheduled for hearing on 10th July 2026 at 02:00 PM, with directions for the amended memo to be filed (Paras 1-5).
Headnote
A) Insolvency Law - Substitution of Parties - Assignment of Debt - Substitution of Prudent ARC Ltd. as Respondent No. 2 - National Company Law Appellate Tribunal allowed the substitution of Prudent ARC Ltd. as respondent No. 2 following the assignment of debt from Indian Overseas Bank. The Tribunal permitted the appellant to refer to any material and pleadings on behalf of IOB for deciding the case, ensuring that the rights of the parties are preserved (Paras 1-5).
Issue of Consideration
Whether the applicant can be substituted as a respondent in place of the original respondent due to assignment of debt.
Final Decision
The Tribunal allowed the applications for substitution, substituting Prudent ARC Ltd. as respondent No. 2 and permitting the appellant to refer to material and pleadings on behalf of IOB.
Law Points
- Substitution of parties
- Assignment of debt
- Committee of Creditors
