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NCLAT Reiterates Due Process in Excluding Creditors from CoC, Expunges NCLT Observations
27 Jan 2026
- DMD Advocates
- Matter Reporting
The Hon’ble National Company Law Appellate Tribunal (NCLAT), vide its judgment dated January 22, 2026, has allowed the appeal filed by Appellant (Financial Creditor) seeking expungement of certain observations made by the Ld. National Company Law Tribunal (NCLT), Ahmedabad, against the Appellant and its associate companies.
NCLAT held that the NCLT’s observations questioning the Appellant’s inclusion in the Committee of Creditors, on the premise that the Appellant was allegedly subject to enforcement proceedings, were unsupported by any material on record. The NCLAT noted that no evidence of any Enforcement Directorate proceedings against the Appellant had been placed before the NCLT.
NCLAT emphasised that exclusion of a creditor from the Committee of Creditors is a serious matter and held that such findings cannot be recorded without evidence or without affording the affected party an opportunity of hearing. On this basis, the NCLAT expunged the impugned observations in their entirety, restoring clarity on the Appellant’s status and reiterating the need for factual precision and procedural fairness in insolvency proceedings.
Our Partner, Kuber Dewan, along with Neeharika Aggarwal, Associate Partner, and Kaustubh Srivastava, Associate, appeared on behalf of the Appellant.
Read More: https://ibclaw.in/jogihali-wind-energy-pvt-ltd-vs-yogesh-mehra-and-ors-nclat-new-delhi/
