Case Note & Summary
The case involved an appeal by the suspended director of a corporate debtor, M/s. Barasat Krishnagar Expressways Ltd., challenging an order that admitted the corporate debtor to Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The corporate debtor was engaged in a contract for laying roads on a Build-Operate-Transfer (BOT) basis, but faced difficulties due to land acquisition disputes, leading to the termination of the contract and invocation of arbitration against the National Highways Authority of India (NHAI). The arbitration proceedings were complicated by the death of the arbitrator and subsequent Supreme Court intervention, which appointed a new arbitrator. The Tribunal initially modified its order in August 2026, but upon reviewing the circumstances, recognized that the corporate debtor's only asset was contingent on the arbitration outcome. The Tribunal decided to restore the earlier order from January 2024, allowing the arbitration to proceed without interference. The appeal was scheduled for further hearing in December 2026, and the interim order from January 2024 was continued until then.
Headnote
A) Corporate Law - Corporate Insolvency Resolution Process - Modification of Admission Order - Insolvency and Bankruptcy Code, 2016, Section 7 - The Tribunal modified its earlier order admitting the corporate debtor to CIRP, recognizing the importance of the arbitration proceedings in determining the corporate debtor's assets. The Tribunal held that the previous order complicated the situation and restored the earlier interim order to allow the arbitration process to conclude (Paras 1-5).
Issue of Consideration
Whether the order admitting the corporate debtor to Corporate Insolvency Resolution Process (CIRP) should be modified.
Final Decision
The Tribunal modified its earlier order and restored the interim order from January 2024, allowing the arbitration proceedings to continue without interference. The appeal was scheduled for further hearing on 15.12.2026.
Law Points
- Corporate Insolvency Resolution Process
- Arbitration
- Modification of Orders
