NCLAT Replaces NCLT's Two-Week Deadline With 90 Days For Nobal Buildtech To Pay ₹90 Crore Settlement

The National Company Law Appellate Tribunal (NCLAT) at Delhi has given Nobal Buildtech Pvt. Ltd. 90 days to pay Rs 90 crore under a settlement, replacing the two-week window earlier granted by the New Delhi Bench of the National Company Law Tribunal.

The New Delhi Bench of the NCLT had revived the company's insolvency process on January 7, 2026 and later extended limited protection only until February 4, 2026. The company had sought more time to complete the settlement.

Modifying that order, a bench of Judicial Member Justice Ashok Bhushan and Technical Member Barun Mitra said sufficient cause had been shown to grant 90 days.

"Reasonable and limited period was required to enable the proposed investor to complete its internal approvals and to facilitate infusion of funds. Adjudicating authority in the order dated 21.01.2026 although has not adverted to the pleadings in the application and facts pleaded, however granted limited protection for a period of two weeks", the tribunal observed.

The appeal was filed by Harvinder Singh Sikka, suspended director of the company.

The dispute arises from insolvency proceedings initiated against Nobal Buildtech Pvt. Ltd., which had stood as corporate guarantor for secured debentures worth Rs 136 crore issued by Kindle Infraheights Pvt. Ltd. to Asia Pragati Strategic Investment Fund. Orbis Trusteeship Services Pvt. Ltd., the debenture trustee, had moved the insolvency proceedings.

In May 2025, Nobal Buildtech and Orbis entered into a settlement for Rs 210 crore. Of this, Rs 120 crore has already been paid. The balance of Rs 90 crore remains outstanding.

The insolvency proceedings were withdrawn by the New Delhi Bench of the NCLT in July 2025 after the settlement. However, they were later restored following a dispute between the parties over payment timelines.

Allowing the appeal filed by suspended director Harvinder Singh Sikka, the appellate tribunal held that the company should be given 90 days from the date of its order to clear the remaining amount. If the payment is made within that period, the earlier withdrawal of the insolvency proceedings will automatically take effect.