Supreme Court – Daily Orders
Avj Heightss Apartment Owners … vs Iifl Finance Limited on 29 April, 2026
CIVIL APPEAL NOS. 3811/2023
ITEM NO.301 COURT NO.7 SECTION XVII-B
(PART HEARD)
S U P R E M E C O U R T O F I N D I A
RECORD OF PROCEEDINGS
CIVIL APPEAL NOS. 3811/2023
AVJ HEIGHTSS APARTMENT OWNERS ASSOCIATION APPELLANT(S)
VERSUS
IIFL FINANCE LIMITED & ANR. RESPONDENT(S)
IA No. 105738/2023 - EXEMPTION FROM FILING O.T.
IA No. 105737/2023 - STAY APPLICATION
WITH
C.A. NO. 4628/2026 (XVII-B)
IA No. 122548/2023 - EXEMPTION FROM FILING C/C OF THE IMPUGNED
JUDGMENT
IA No. 122547/2023 – PERMISSION TO FILE ADDITIONAL
DOCUMENTS/FACTS/ANNEXURES
IA No. 122544/2023 – PERMISSION TO FILE APPEAL
IA No. 122549/2023 – STAY APPLICATION
Date : 29-04-2026 These matters were called on for hearing today.
CORAM :
HON’BLE MR. JUSTICE J.B. PARDIWALA
HON’BLE MR. JUSTICE K.V. VISWANATHANAmicus Curiae : Mr. Navin Pahwa, Sr. Adv.
Mr. Gopal Jain, Sr. Adv.
For Appellant(s) : Mr. Sanjay Singh, Adv.
Mr. Umang Shankar, AOR
Mr. Shalender Singh Negi, Adv.
Mrs. Neha Shankar Srivastava, Adv.
Mr. Zeeshan Diwan, AOR
Signature Not Verified Mr. Krishna Datta Multani, Adv.
Digitally signed by
POOJA SHARMA
Mr. Harsha, Adv.
Date: 2026.04.30
20:21:32 IST
Reason:
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CIVIL APPEAL NOS. 3811/2023
For Respondent(s) :
Mr. Neeraj Kishan Kaul, Sr. Adv.
Mr. Nakul Dewan, Sr. Adv.
Mr. Angad Varma, Adv.
Mr. Nikhil Mehndiratta, Adv.
Mr. Toyesh Tewari, Adv.
Mr. Agastya Sen, Adv.
Ms. Nidhisha Choksi, Adv.
Mr. Satendra, Adv.
For M/S. Dua Associates
Mr. Anand Padmanabhan, Sr.Adv.
Ms. Pallavi Pratap, AOR
Ms. Anupriya Dixit, Adv.
Mr. Deepak Khosla, Adv.
Mr. Pranav Sachdeva, AOR
Mr. P Rohit Ram, Adv.
Ms. Mishra Divya Santosh, Adv.
Mr. Sanyam Jain, Adv.
Ms. Khushboo Singhal, Adv.
Ms. Mani Gupta, Adv.
Mr. Harsh Parashar, AOR
Ms. Sonali Jain, Adv.
Mr. Udhav Mittal, Adv.
Mr. Namit Saxena, AOR
Mr. Madhav Singhal, Adv.
Mr. Saurav Roy, Adv.
Ms. Prerna Dhal, Adv.
Ms. Madhulika Upadhyay, AOR
UPON hearing the counsel, the Court made the following
O R D E R
1. By our order dated 16.04.2026, we took a serious
notice of gross delay occurring in the approval of the
Resolution Plan pending before the various Benches of
the National Company Law Tribunal (NCLT). In such
circumstances, we thought it fit to call for some
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CIVIL APPEAL NOS. 3811/2023relevant information, more particularly, the number of
applications pending for approval of Resolution Plans;
since how long all such applications are pending; and
the reasons for delay in adjudication of the approval
applications. We had requested all the learned counsel
appearing for the parties to provide us with the
necessary information/data as regards the questions
raised above. We had also requested the Registrar,
NCLT, Principal Bench, New Delhi, to provide us with a
report answering our queries. The Insolvency and
Bankruptcy Board of India (IBBI) was also ordered to
be impleaded as party respondent in the appeals before
us. In the last, we requested Mr. Gopal Jain and
Mr. Navin Pahwa, learned Senior Counsel to assist us
as an Amicus.
2. Today, when the matter was taken up for further
hearing, we have been provided with the relevant
information/data. The picture highlighted by one and
all before us is extremely green and dismal. As per
the report forwarded by the Registrar of the NCLT,
Principal Bench, there are 363 applications awaiting
approval. The delay as sought to be explained ranges
from 48 days to 738 days. In some cases, the delay is
up to four years. The reasons which have been
assigned by and large are lack of adequate
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infrastructure, the lack of infrastructure resulting
in half day sittings of the Benches, more
particularly, due to interchange of combinations and
large pendency of objections to the Resolution Plan
filed by various parties/stakeholders. We take notice
of the fact that in very few cases there are some
interim orders passed by Higher Courts.
3. We have also heard Ms. Mani Gupta, learned
counsel appearing for the Resolution Professional in
the present matter. She has also provided us very
useful information. The first thing she has
highlighted is the severe shortage of Judicial and
technical members. The statutory sanctioned strength
of NCLT across the country is 63 members comprising
one President and 31 Judicial and Technical Members
each. However, we are thoroughly disappointed to state
that, out of the sanctioned strength of 63, presently
only 28 Judicial Members and 26 Technical Members are
posted across various NCLT Benches as on 28.04.2026.
There is acute shortage of ten members, which is
severally affecting the efficiency of the functioning
of NCLT Benches in disposal of cases within the time
bound manner.
4. The second aspect highlighted is with respect to
non-allocation of adequate infrastructure. Some
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instances have been highlighted why the functioning
had to be suspended indefinitely etc.
5. Thereafter, the learned counsel highlighted the
inadequacy in technology and administrative support;
and in the last, the misuse of Section 60(5) of the
IBC was highlighted.
6. In due deference to our request, Mr. Navin Pahwa,
learned Amicus has provided us very useful
information. The note provided by Mr. Pahwa talks
about: i) Time lines of CIRP, ii) Status of Resolution
Plans, iii) General reasons for delay in decisions on
on Resolution Plans, iv) Qualification and Selection
of the Members of the Tribunal, v) Appointment of
staff of Tribunal.
7. What has been brought to our notice by Mr. Pahwa
is something very disturbing. It was pointed out to
us that even the post of Registrar, barring few
Benches, is filled up on contractual basis. This is
something unheard of. It was also brought to our
notice that none of the Benches of the NCLT have full
time employees. Advertisements are published by the
NCLT inviting applications for engagement to the post
of Deputy Registrar purely on contractual assignment
in different Benches of NCLT. All other staff
including the Secretary, Court Master, Stenographers,
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legal assistants are appointed on contractual basis by
office of the President, NCLT. The services of all
these persons contractually appointed are purely
temporary and are intermittently terminated. There
are issues about non-payment of salary and other
allowances. Mr. Pahwa has cited one instance of a
news report dated 14.01.2025 that the entire staff of
NCLT Mumbai were on strike as salaries were not paid
on time. He also highlighted the importance of
providing each member with a research associate/legal
assistant.
8. Some of the suggestions put by Mr. Pahwa are as
under:
“1. The MCA, UOI be directed to recruit
permanent staff for all the Benches of Tribunal
including, in particular, the Court Officer,
Stenographers and Research Associates/Legal
Assistants.
2. Court Rooms at least equal to the number of
Benches with all infrastructure be made
available within defined timelines.
3. The vacancies be filled-up in defined
timelines.
4. The Benches may be encouraged/persuaded to
function during the entire Court hours.
5. Regular workshops and colloquiums be held
in defined time lines in consultation with
President/IBBI.
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6. It is important that before deciding the
Plan Approval Application, the NCLT should
decide:-
a) issues of eligibility u/s 29A, if
any;
b) Challenge to the admission/
rejection of claims;
c) Challenge to the constitution of
CoC;
expeditiously.
7. In Plan Approval Applications, as a matter
of General Guidelines and instructions,
following parties may be added at the initial
stage itself:
a) the CoC through lead member;
b) suspended management;
c) Income Tax Department in the
event the Plan has a provision to
carry forward of business losses as
per Sec.79 of the Income Tax Act,
1961
d) Regulators such as RERA, NOIDA
Authority, etc. in case of plans
concerning Home Buyers;
e) Plan concerning telecom/ spectrum
cases, the DoT may be made party.
8. The disposal of avoidance applications may
not be linked to disposal of Application for
Approval of Resolution Plan. Section 26 of the
IBC specifically states that filing of an
avoidance application under Section 25(2)(j)
shall not affect the proceedings of CIRP.
Regulation 37(a) already stipulates a provision
to be made in the plan for transfer of all/
part of the assets of Corporate Debtor from
such avoidance applications.
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9. As per the mandate of Section 31(2A)
(although yet to be notified), the Plan
Approval Application be disposed within a
period of 30 days. For achieving this, after
initial period of completion of proceedings,
such applications be heard on day-to-day basis
in the post lunch period.”
9. Mr. Gopal Jain, learned Amicus, has also assisted
us on the issues highlighted above. Mr. Jain
submitted that in the recent amendment undertaken,
Section 31(2A) has been inserted. By this amendment,
now the application seeking approval has to be
disposed of within a period of thirty days. Of
course, this amendment has not yet come into force.
But the day it comes into force, we have our own
doubts whether true effect could be given to this
particular amendment in light of the deficiencies
which we have highlighted above.
10. National Company Law Tribunals exercise vast
jurisdiction, both under the Companies Act, 2013 and
under the Insolvency and Bankruptcy Code, 2016 (IBC,
2016). In the statement of objects and reasons of the
IBC, 2016, the following has been set out:
“2. The objective of the Insolvency and
Bankruptcy Code, 2015, is to consolidate
and amend the laws relating to
reorganization and insolvency resolution
of corporate persons, partnership firms8
CIVIL APPEAL NOS. 3811/2023and individuals in a time bound manner for
maximization of value of assets of such
persons, to promote entrepreneurship,
availability of credit and balance the
interests of all the stakeholders
including alteration in the priority of
payment of government dues and to
establish an Insolvency and Bankruptcy
Fund, and matters connected therewith or
incidental thereto. An effective legal
framework for timely resolution of
insolvency and bankruptcy would support
development of credit markets and
encourage entrepreneurship. It would also
Improve Ease of Doing Business, and
facilitate more investments leading to
higher economic growth and development.”
(Emphasis supplied)
11. In the state of affairs that are presently
prevailing, the objective of time bound resolution is
impossible to achieve. IBC, 2016, is a crucial piece
of economic legislation, which impacts the credit
system as well as the economy itself in general in a
very big way. The very purpose of introducing the
IBC, 2016 was on account of the fact that the system
that was provided earlier under the Sick Industrial
Companies Act, 1985, turned out to be a total failure.
From a promoter driven resolution under the SICA on
the advise of expert Committees, (reports like the
T.K. Viswanathann Committee and the Injeti Srinivas
Committee), a shift was brought about to make
Insolvency Resolution a creditor driven process.
Thousands of Crores of Rupees are at stake. The whole
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idea was to sustain companies which were going down
the drain on account of various factors and keep
companies afloat as a going concern, so that the
economy is kept on its wheels and the labour is
protected.
12. We take suo moto cognizance of the aforesaid in
larger public interest. We believe that all the issues
as aforesaid need to be addressed on a war footing,
otherwise the very purpose and object of enacting the
IBC would stand frustrated.
13. As we have taken suo moto cognizance, let the
matter be now placed before Hon’ble the Chief Justice
of India for further orders. The Registry shall, at
the earliest, place this order before Hon’ble the
Chief Justice of India.
14. Insofar as the merits of the appeals are
concerned, we shall await for the appropriate orders
that Hon’ble the Chief Justice of India may pass.
15. We are grateful to all the learned counsel
appearing in this litigation for assisting us by
providing the relevant information, more particularly,
Mr. Navin Pahwa and Mr. Gopal Jain, learned Senior
Counsel, whom we have appointed as Amicus Curiae to
assist us.
16. We also place on record our gratitude for Ms. Mani
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Gupta, learned counsel appearing for the Resolution
Professional, for producing a very exhaustive report
on all the relevant aspects of the matter.
(POOJA SHARMA) (POOJA SHARMA)
AR-CUM-PS COURT MASTER (NSH)
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