NCLAT Declines to Interfere in Liquidator’s Appeal, Urges Swift Disposal of Auction Dispute [Read Order]
NCLAT held that once an appellate direction is issued to decide pending IAs, the Adjudicating Authority must act swiftly, as delays undermine the time-bound framework of the IBC
![NCLAT Declines to Interfere in Liquidator’s Appeal, Urges Swift Disposal of Auction Dispute [Read Order]](https://images.taxscan.in/h-upload/2025/07/18/2065050-2054263-liquidator.webp "NCLAT Declines to Interfere in Liquidator’s Appeal, Urges Swift Disposal of Auction Dispute [Read Order]")
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, recently disposed of an appeal filed by a Liquidator expressing concern over the pendency of key applications stalling the liquidation process. The Tribunal refrained from intervening at this stage but urged the Adjudicating Authority to take up the matter without delay. The Liquidator, Ramesh...
The National Company Law Appellate Tribunal (NCLAT), Principal Bench at New Delhi, recently disposed of an appeal filed by a Liquidator expressing concern over the pendency of key applications stalling the liquidation process. The Tribunal refrained from intervening at this stage but urged the Adjudicating Authority to take up the matter without delay.
The Liquidator, Ramesh Kumar Totla, approached the NCLAT stating that despite the earlier directions of the Appellate Tribunal, the NCLT proceedings were being repeatedly adjourned and delayed. As a result, he was unable to move forward with finalising the liquidation process of Galaxy Cotton and Textiles Pvt. Ltd.
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The original matter stems from objections raised by the Successful Auction Purchaser, Shyam Sundar Commodities Pvt. Ltd., who had filed the two IAs challenging aspects related to the auction process or its implementation. While the specifics of those applications remain pending before the NCLT, the Liquidator submitted that the matter had already been listed multiple times and was now scheduled again for July 28, 2025.
Taking note of the timeline, the NCLAT referred to its earlier order dated October 21, 2024, wherein it had made it clear that the Adjudicating Authority must decide the pending IAs in accordance with law and that the Liquidator should not proceed further with the liquidation process until the disposal of those applications.
The Appellate Tribunal bench, comprising Justice Ashok Bhushan (Chairperson) and Mr. Barun Mitra (Technical Member), acknowledged the Liquidator’s concern regarding the delay, but chose not to entertain the fresh appeal, considering that the NCLT had already scheduled a hearing for the end of July.
It was noted by the NCLAT that the Adjudicating Authority to consider and dispose of the application on the next date or as early as possible.
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