# Jyoti Structures Limited vs. DBS Bank Limited

> NCLAT judgment dated 2026-07-08. Citation: TCN-2026-NCLAT-00227. Jyoti Structures Limited (appellant), as the successor in management of a corporate debtor,…

- **Court:** NCLAT
- **Order date:** 8 Jul 2026
- **Citation:** TCN-2026-NCLAT-00227
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/jyoti-structures-limited-vs-dbs-bank-limited-hqi9k

## Summary

### Background

Jyoti Structures Limited (appellant), as the successor in management of a corporate debtor, appealed an Adjudicating Authority order dated 11.06.2026. This order had dismissed the appellant's application (I.A. No.390 of 2026) filed under Section 65 of the IBC, which alleged that DBS Bank Limited (respondent), a dissenting Financial Creditor, had maliciously and fraudulently instituted a liquidation application (I.A. No.93 of 2025). The resolution plan for the corporate debtor was approved in March 2019 and became implementable in November 2021. The appellant claimed to have made payments to the respondent, but the respondent alleged material breaches of the resolution plan and unencashed demand drafts, leading to its liquidation application.

## Facts

Jyoti Structures Limited (appellant) was taken over by a new management following a successful resolution of an insolvency process.

The Adjudicating Authority approved the resolution plan in March 2019, which was later challenged before this Tribunal and eventually dismissed.

The resolution plan became implementable on 09.11.2021, when the new management took over the corporate debtor.

DBS Bank Limited (respondent) is a dissenting Financial Creditor entitled to payment as per the approved resolution plan.

The appellant claims to have paid the respondent in four installments on 10.11.2021, 15.07.2023, 11.09.2024, and 17.06.2025.

…

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority was correct in dismissing I.A. No.390 of 2026, which alleged …

**Ratio:** The Adjudicating Authority erred in dismissing the application under Section 65 of IBC at

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**Reasoning:** The Adjudicating Authority's reasoning that the appellant's contention required

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**Interpretation:** Section 65 of the IBC allows for penalties if insolvency or liquidation

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**Application:** The NCLAT applied Section 65 by setting aside the Adjudicating Authority's

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## Parties

- **Judges:** N. Sesha…; Barun M…
- **Respondents:** Jyoti Structures…; DBS Bank L…
- **Other parties:** CoC…
- **Advocates:** Arun Kath…; Anuj Ti…; +7 more

## Timeline

- **2019-03-XX — Resolution Plan…**: Adjudicating Authority…
- **2021-11-09 — Resolution Plan…**: The resolution plan became implementable, and new management took over the corporate…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 65 — Fraudulent or malicious initiation of proceedings](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-65)

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