J U D G M E N T

(27^th April, 2026)

INDEVAR PANDEY, MEMBER (T)

1.The present Appeal has been preferred under Section 61 of the Insolvency and Bankruptcy Code, 2016 (herein after the ‘Code’) by the Appellant, M/s Manjeet Cotton Pvt. Ltd., being the Successful Cont’d…./ Resolution Applicant of the Deegee Cotsyn Pvt. Ltd. (Corporate Debtor), assailing the legality and correctness of the impugned order dated 03.09.2025 passed by the Ld. National Company Law Tribunal, Mumbai Bench (Adjudicating Authority) in I.A. No. 1393 of 2022 in Company Petition No. IB No. 2285/MB/2018. By the said impugned order, the Adjudicating Authority has allowed the application filed by the Respondent, Phoenix ARC Pvt. Ltd., (Financial Creditor), and directed that the surplus amount of Rs. 1 crore generated during the Corporate Insolvency Resolution Process (CIRP) period from 01.11.2019 to 11.03.2022 be distributed among the financial creditors in accordance with the waterfall mechanism prescribed under Section 53 of the Code. The Adjudicating Authority has further held that the Appellant, M/s Manjeet Cotton Pvt. Ltd., in its capacity as Successful Resolution Applicant, is not entitled to claim the said surplus a