Supreme Court Rebukes NCLAT Over Missed Hearing and Issues Binding Directions

On July 23 2026 the Supreme Court sought an explanation from the National Company Law Appellate Tribunal (NCLAT) for failing to hear an appeal that the Court had specifically requested be heard on that date. The bench, comprising Justices J B Pardiwala and K Vinod Chandran, said the tribunal’s conduct was “quite disturbed” and emphasized that any request from the Supreme Court must be treated as a direction, not a mere suggestion. The justices warned that non-compliance would be taken “very seriously.”

Business Standard (India)Hindustan Times

The appeal concerns Mahamaya Exports Private Limited and its shareholders, including Vashisht Kumar Goyal. The dispute arose after the National Company Law Tribunal (NCLT) reserved an order on an application to initiate insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC). While the Supreme Court’s request was pending, the NCLT pronounced its reserved order and admitted the company into insolvency, allowing a Committee of Creditors (CoC) to be formed under the IBC framework.

Business Standard (India)

Following the NCLAT’s failure to act, the Supreme Court bench issued a notice, returnable on November 19 2026, directing the tribunal to explain why the appeal was not heard despite the July 15 2026 request. The Court also restrained the constitution of the CoC pending that explanation, thereby halting a further step in the insolvency process.

Business Standard (India)Hindustan Times

The NCLAT has fixed its next hearing for November 17 2026. The Supreme Court’s notice, due on November 19 2026, will determine whether the tribunal’s non-compliance will attract further judicial scrutiny or corrective measures. The outcome will shape the continuation of the insolvency proceedings and the company’s proposed rights issue, in which existing shareholders would be offered additional shares proportionate to their holdings.

Business Standard (India)