Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2026 Supreme(Online)(NCLAT) 720

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI
SUBHAM BHAGAT – Appellant
Versus
SANJEEV KUMAR JALAN RESOLUTION PROFESSIONAL OF ANKIT METAL & POWER LIMITED – Respondent
I.A. No. 4522 of 2026 | Comp. App. (AT) (Insolvency) No. 1099 of 2026

Advocates:
For the Appellants/Petitioners: P. Nagesh, Rohit Dutta
For the Respondents: Ritoban Sarkar, Ankur Singhi, Piyali Pan, Ayush Gautam, Soorjya Ganguli, Pooja Chakrabarti, Mohit Dang, Arun Kathpalia, Krishnendu Datta, Shounak Mitra, Prateek Kumar, Raveena Rai, Siddhant Grover, Anvita Goel

A suspended director is not automatically entitled to participate in the plan approval proceedings before the Adjudicating Authority if the Authority has already been directed to review the plan afresh and independent of previous observations.

Headnote:The matter involves an application filed by a suspended director of a corporate debtor challenging the rejection of objections regarding material irregularities in the approval of a resolution plan by the Committee of Creditors. The appellant sought clarification on a previous order to be permitted to participate in the pending plan approval proceedings under the Insolvency and Bankruptcy Code. The primary issue was whether the suspended director should be permitted to participate in the proceedings for plan approval pending before the Adjudicating Authority. The court reasoned that since the Adjudicating Authority was already directed to take a fresh view of the resolution plan unhindered by previous observations, the appellant's participation was not required at this stage. IA No.4522 of 2026 is disposed of.

ORDER

(Hybrid Mode)

07.07.2026: I.A. No. 4522 of 2026 :-

This Application is preferred by the Appellant, who is a Suspended Director of the Corporate Debtor and challenges an order rejecting a set of objection rise by the Appellant which according to him highlights certain material irregularities in procedure in approving the plan by the CoC. This application came to be dismissed by the Adjudicating Authority on grounds which tantamount to approving the very plan. The Appellant’s Counsel submits that the application filed by the RP seeking the approval of the Adjudicating Authority to the plan placed before it is still pending consideration. It is in these circumstances on 30.06.2026, this Tribunal passed the following order:-

“Ld. Counsel for Appellant submits that Application for Plan approval in IA (I.B.C.) 223/KB/2026 is already listed for consideration.
We make it clear that the Adjudicating Authority may proceed to decide the Application for Plan approval in accordance with law without being influenced by any observation made in the impugned order.”

Today, the Appellant has taken up the present IA No.4522 of 2026 seeking clarification of the said order. The Learned Counsel for the Appellant would submit that the Appellant be permitted to participate in IA No.3 (Plan)/2026 which is pending consideration of the Adjudicating Authority under Section 31 IBC.

We do not consider that the Appellant need be permitted to participate in the proceeding in view of the order dated 30.06.2026. The Adjudicating Authority is required to take a fresh view of the Resolution Plan unhindered by its earlier observations made in the impugned order. If the Appellant is aggrieved by any ultimate outcome of the order to be pronounced by the Adjudicating Authority in IA No.3 (Plan)/ 2026 he has his remedy intact to oppose the same at appropriate time in appropriate forum. IA No.4522 of 2026 is disposed of.

I.A. No. 4522 of 2026 IN Comp. App. (AT) (Insolvency) No. 1099 of 2026

List the Appeal on 31.07.2026.

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2026 Supreme(Online)(NCLAT) 720

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHISUBHAM BHAGAT – AppellantVersusSANJEEV KUMAR JALAN RESOLUTION PROFESSIONAL OF ANKIT METAL & POWER LIMITED – RespondentI.A. No. 4522 of 2026 | Comp. App. (AT) (Insolvency) No. 1099 of 2026

A suspended director is not automatically entitled to participate in the plan approval proceedings before the Adjudicating Authority if the Authority has already been directed to review the plan afresh and independent of previous observations.

NATIONAL COMPANY LAW APPELLATE TRIBUNAL, PRINCIPAL BENCH, NEW DELHI
SUBHAM BHAGAT – Appellant
Versus
SANJEEV KUMAR JALAN RESOLUTION PROFESSIONAL OF ANKIT METAL & POWER LIMITED – Respondent
I.A. No. 4522 of 2026 | Comp. App. (AT) (Insolvency) No. 1099 of 2026