1. Appeal against an order passed in an application seeking extension of the corporate insolvency resolution process period, where the court issued additional directions to a financial creditor. (Para 1 )
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2026 Supreme(Online)(NCLAT) 1016
NATIONAL COMPANY LAW APPELLATE TRIBUNAL PRINCIPAL BENCH, NEW DELHI
Yogesh Khanna, Chairperson, Barun Mitra, J, Ajai Das Mehrotra, J
Bank of Baroda – Appellant
Versus
Sanjay Garg – Respondent
Company Appeal (AT) (Insolvency) No. 2005 of 2026
Important Points
The NCLAT held that the NCLT cannot issue directions to a bank's CMD to explain credit facility decisions within an application filed solely for the extension of the CIRP period, as such directions exceed the scope of the application.
Subject
Insolvency and Bankruptcy - Corporate Insolvency Resolution Process
Headnote
(A) Corporate Insolvency Resolution Process (CIRP) - Extension of Time - Scope of Adjudicating Authority - Directions issued to the CMD of a bank regarding the granting of financial facilities in an application filed solely for the extension of the CIRP period are beyond the scope of the application and are liable to be expunged. (Para 2)
Issues: Whether the NCLT could issue directions to the CMD of the Bank in an application filed merely for the extension of the CIRP period.
Issues: Whether the NCLT could issue directions to the CMD of the Bank in an application filed merely for the extension of the CIRP period.
Legal Category Hierarchy
Advocates:
For the Appellants/Petitioners: Ankur Mittal, Sougat Sinha, R. Gayathri Manusa, Vishal Majumdar, Anurag Singh, Abhiraj Pandey
For the Respondents: Asiya Khan, Sanjay Garg
For the Appellants/Petitioners: Ankur Mittal, Sougat Sinha, R. Gayathri Manusa, Vishal Majumdar, Anurag Singh, Abhiraj Pandey
For the Respondents: Asiya Khan, Sanjay Garg
Table of Contents
2. The appellant contended that the impugned directions, which went beyond the scope of the original application for time extension, were erroneous. (Para 2 )
3. The court found that the original application was limited solely to requesting an extension of time and did not warrant additional directions regarding prior financial facility investigations. (Para 2 )
4. Directions in an order must remain confined to the scope of the application filed; extraneous directions beyond the relief sought in a procedural application are liable to be expunged. (Para 2 )
5. The extraneous directions regarding the financial facility were expunged, the extension of the resolution period was confirmed, and pending applications were closed. (Para 2 , 3 )
6. Can a tribunal issue directions beyond the scope of the prayers made in an interlocutory application?
No, the court held that where an application is filed for a specific limited purpose, such as an extension of time in the insolvency process, the tribunal should confine its directions to the relief sought. (Para 2 )
O R D E R
(Hybrid Mode)
16.10.2026: This appeal is filed against an impugned order dated 21.09.2026 passed in IA No. 3246 of 2026 in CP (IB)-24(PB)/2022 by the Ld. NCLT, New Delhi Bench whereby in an application merely for grant of extension of 60 days w.e.f 15.07.2026 in the CIRP period, certain directions were given to CMD of the Bank.
2. With the aid of the Ld. Counsels for both the parties, we dispose of this appeal by expunging the directions given to the CMD, Bank of Baroda to explain as to how the Bank could extend the financial facility to a company, without verifying that the allotment of land in its favour by HSVP could be terminated before the commencement of CIRP, as is noted in the impugned order dated 21.09.2026 the application viz. IA No. 3246 of 2026 was merely for extension of time and nothing else. Admittedly, the extension is now granted by the Ld. NCLT, hence, we delete the said directions given by the Ld. NCLT in the impugned order and instead let an affidavit be filed by an authorised officer of the Bank to such effect before the Ld. NCLT within two weeks from today.
3. The appeal stands disposed of in terms of the above. Pending application(s) viz. I.A. No. 7588 and 7589 of 2026 are closed.
