Challenge against order before NCLT: Karnataka HC Extends Interim Relief as Employees Union Seeks to Join Insolvency Proceedings against Dunlop Polymers [Read Order]

The Karnataka High Court has disposed of a writ petition filed by the Dunlop Polymers Employees Union, challenging the order that rejected the impleading application before the National Company Law Tribunal (NCLT) directing them to approach the National Company Law Appellate Tribunal (NCLAT) as an alternative remedy, while extending interim relief previously granted.

The petition was filed by the workmen of Dunlop Polymers Ltd., represented by their union, challenging an order of the National Company Law Tribunal (NCLT) dated 29.05.2025. The order had rejected their impleading application (I.A.No.893/2024) in CP (IB) No.123/BB/2019, which sought to add the employees' union as a party to the insolvency proceedings against Dunlop Polymers (P) Ltd.

The petitioners sought two main reliefs: to set aside and quash the NCLT order rejecting their impleading application, and to allow their application to be impleaded in the insolvency proceedings. The respondents included M/s Millers Trader Pvt Ltd. and Dunlop Polymers (P) Ltd., with the latter represented through its Resolution Professional.

A single bench of Justice Suraj Govindaraj observed that what was being challenged was the order rejecting the impleading application filed by the petitioner before the NCLT. The court noted that the petitioners had an alternative efficacious remedy before the National Company Law AppellateTribunal (NCLAT), which they should approach.

In view of these circumstances, the court disposed of the petition while extending the interim order previously granted on 19.06.2025 until the application for interim stay is considered by the NCLAT. This ensures that the employees' interests remain protected while they pursue their remedy before the appellate tribunal.

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