NCLT Delhi Says Transfer Plea Cannot Be Allowed 'At Mere Asking,' Dismisses Ex-Promoter's Application

The Principal Bench of the National Company Law Tribunal (NCLT), New Delhi, has dismissed a transfer application filed by the ex-promoter of Nimitaya Hotel Resorts Ltd. seeking to move the company's insolvency proceedings from the Special Bench to another bench. The tribunal imposed costs of ₹50,000 after finding that the applicant had concealed material facts.

The order was passed by NCLT President Justice Anupinder Singh Grewal who observed,

“A transfer application cannot be allowed at the mere asking of the party. A matter ought to be transferred from one court to another only in compelling circumstances, including as where transfer is necessary for consolidation, to avoid conflicts or inconsistent orders, or where there exists a reasonable apprehension of bias.”

Ex-promoter Sanjeev Mahajan contended that no effective hearing had taken place before the Special Bench and that the insolvency proceedings were being unnecessarily delayed. He sought transfer of the case to another bench.

The Resolution Professional opposed the application, pointing out that Mahajan had earlier filed a similar transfer application, which was later dismissed as not pressed.

The tribunal noted that this fact had not been disclosed in the present application. It also recorded that Mahajan had approached the Delhi High Court through a writ petition in which one of the prayers sought transfer of the matter from the Special Bench to another bench. That too was not disclosed in the present transfer application.

The tribunal noted that the Special Bench had been hearing the insolvency proceedings and had passed orders on April 15 and May 20, 2026.

“It was enjoined upon the applicant to disclose all the material facts including those which go against him. This Court cannot approve of such conduct of the applicant to withhold material information from the Court.”, the tribunal ruled.

Although the applicant later filed an affidavit describing the omissions as a bona fide mistake, the tribunal held that the relevant facts ought to have been disclosed in the transfer application itself. It also noted that the application ran into 73 pages and was accompanied by 833 pages of documents spread across five volumes.

The tribunal also recorded the Successful Resolution Applicant's submission that it was a necessary party but had intentionally not been impleaded in an attempt to delay the proceedings.

Finding no ground to transfer the insolvency proceedings, the tribunal dismissed the application and directed Mahajan to deposit ₹50,000 with the Prime Minister's National Relief Fund and place proof of payment on record.