DMD Advocates Represents Appellant Before NCLAT In A Ruling Expunging NCLT Observations, Reaffirming Due Process Requirement Before Excluding Creditors From CoC
DMD Advocates represented the appellant in NCLAT ruling emphasizing due process in creditor exclusion from CoC.
DMD Advocates Represents Appellant Before NCLAT In A Ruling Expunging NCLT Observations, Reaffirming Due Process Requirement Before Excluding Creditors From CoC
The leading law firm, DMD Advocates, represented the Appellant in the recent judgment delivered by the Hon’ble National Company Law Appellate Tribunal (NCLAT) on January 22, 2026. The matter involved the Appellant (Financial Creditor) seeking expungement of certain observations made by the Ld. National Company Law Tribunal (NCLT), Ahmedabad, against the Appellant and its associate companies.
NCLAT affirms procedural fairness and evidence-based findings
NCLAT held that the NCLT’s observations questioning the Appellant’s inclusion in the Committee of Creditors, on the premise that the Appellant was allegedly subject to enforcement proceedings, were unsupported by any material on record. The NCLAT noted that no evidence of any Enforcement Directorate proceedings against the Appellant had been placed before the NCLT.
The Tribunal emphasised that exclusion of a creditor from the Committee of Creditors is a serious matter and held that such findings cannot be recorded without evidence or without affording the affected party an opportunity of hearing. On this basis, the NCLAT expunged the impugned observations in their entirety, restoring clarity on the Appellant’s status and reiterating the need for factual precision and procedural fairness in insolvency proceedings.
Conclusion
This judgment underscores the importance of due process in insolvency proceedings and sets a precedent for ensuring that creditors are not unjustly excluded from the Committee of Creditors. The ruling also highlights the necessity for NCLTs to base their observations on verified evidence and to provide affected parties with a fair opportunity to be heard.
The matter was handled by Kuber Dewan (Partner), along with Neeharika Aggarwal (Associate Partner) and Kaustubh Srivastava (Associate) at DMD Advocates.
DMD Advocates is a leading full-service law firm in India with a focus on solutions through a unique holistic approach that blends its expertise and decades of experience in core practice areas – litigation & arbitration, taxation, corporate, regulatory, competition, and intellectual property rights. We have a team of more than 100 lawyers, including 30 partners/directors, and a pan-India presence, with principal offices in New Delhi & Mumbai and associate offices in Ahmedabad, Bangalore, Chennai, Cochin, Kolkata, and Bhubaneswar.
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