NCLAT Sets Aside NCLT Order Allowing Late Expression Of Interest, Resolution Plan

The National Company Law Appellate Tribunal (NCLAT) in Delhi has set aside an NCLT order that allowed a delayed expression of interest (EOI) and resolution plan, ruling that a resolution applicant cannot be considered after missing the prescribed timelines.

“We are of the view that order of the Adjudicating Authority directing acceptance of the late EoI of Respondent No. 5 could not be sustained and the order need to be set aside.”, the tribunal observed. 

A bench of Chairperson Justice Ashok Bhushan and Technical Member Indevar Pandey was hearing an appeal filed by Ram Prasad Agarwala, suspended director of Fairdeal Supplies Ltd., against the NCLT's March 18, 2026 order.

The NCLT had allowed an application by a third-party applicant seeking to participate in the corporate insolvency resolution process (CIRP), despite the applicant not submitting an EOI within time or figuring in the final list of prospective resolution applicants (PRAs) published on November 25, 2025.

It had condoned the delay in submission of the Letter of Intent and resolution plan “in the interest of justice and all the stakeholders.”

Agarwala argued that only those applicants whose names appeared in the final list of PRAs could be permitted to submit resolution plans, and since the applicant was not part of that list, its plan could not be considered.

Accepting this, the appellate tribunal relied on the CIRP Regulations and its earlier ruling in Aashdan Properties Pvt. Ltd. v. Dr. Mamta Binani to reiterate that plans from applicants outside the final list cannot be entertained unless a fresh invitation for expression of interest is issued.

The tribunal further emphasised that resolution applicants can be considered only in accordance with the prescribed timelines.

“We are of the view that any Resolution Applicant can be considered only in accordance with the timelines, as provided in Form G.”

Accordingly, the appellate tribunal set aside the NCLT order permitting acceptance of the delayed EOI and resolution plan from the applicant.