The National Company Law Appellate Tribunal (NCLAT), Principal Bench, chaired by Justice Ashok Bhushan, along with Technical Members Barun Mitra and Arun Baroka, granted an extension to the Corporate Debtor for settling payment obligations despite failing to meet the deadline imposed by the National Company Law Tribunal (NCLT).

The tribunal permitted the debtor to pay the outstanding balance by October 31, 2024, while imposing interest for the extended period.

The appeal arose after the Corporate Debtor failed to meet the NCLT’s payment schedule, which required half of the outstanding amount to be paid by June 30, 2024, and the remainder by September 30, 2024. As of the June deadline, no payment had been made, prompting the admission of the Section 7 application. The debtor’s counsel, however, expressed readiness to clear the balance within one month, noting that ₹2.75 crores had already been paid by the Personal Guarantors, while ₹3.41 crores remained unpaid.

The NCLAT, after reviewing the appeal, ruled that the debtor must pay the entire amount due as of June 30, 2024, with 9% interest for the delay. The full payment, including interest, is now due by October 31, 2024. Meanwhile, the tribunal instructed that no Resolution Plan be considered until the next hearing, scheduled for November 4, 2024, when the debtor must file an affidavit on the payment status.

Advocates Manan Shishodia and O.P. Soni represented the Corporate Debtor, while Bhanu Chopra appeared for Respondent No. 1.