# Mr. Mukesh Sumermal Sanghvi, Sole Proprietor of Silicon Metal Industries vs. R. D. Engineer (India) Pvt. Ltd.

> NCLAT judgment dated 25 Mar 2026. Citation: TCN-2026-NCLAT-00098. Mr. Mukesh Sumermal Sanghvi (Appellant) initiated proceedings under Section 9 of the IBC,…

- **Court:** NCLAT
- **Order date:** 25 Mar 2026
- **Citation:** TCN-2026-NCLAT-00098
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/mr-mukesh-sumermal-sanghvi-sole-proprietor-of-silicon-metal-industries-vs-r-d-en-e6109c36

## Summary

### Background

Mr. Mukesh Sumermal Sanghvi (Appellant) initiated proceedings under Section 9 of the IBC, 2016, against R. D. Engineer (India) Pvt. Ltd. (Respondent), which were admitted on 26.10.2020. Subsequently, a Settlement Agreement led to the withdrawal of the petition on 16.04.2021, with an express clause allowing for the revival of proceedings upon default in settlement terms. Alleging breach and default in payment, the appellant filed Restoration Application No. 19 of 2025 to revive the Company Petition. The Adjudicating Authority (NCLT, Mumbai Bench) dismissed this Restoration Application via an order dated 21.04.2025, primarily on the ground that it was filed nearly two years after the last installment date under the settlement schedule, without even issuing notice to the

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## Facts

Mr. Mukesh Sumermal Sanghvi (Appellant) initiated proceedings under Section 9 of the IBC, 2016, against R. D. Engineer (India) Pvt. Ltd. (Respondent).

The IBC proceedings were admitted on 26.10.2020.

A Settlement Agreement was reached between the parties, leading to the withdrawal of the petition on 16.04.2021, with liberty to revive the proceedings upon default of settlement terms (Clauses 18 and 19).

Alleging breach of the settlement and default in payment, the appellant filed Restoration Application No. 19 of 2025 seeking revival of C.P. (IB) No. 925 of 2020.

The Adjudicating Authority (NCLT, Mumbai Bench) dismissed the Restoration Application on 21.04.2025, without issuing notice to the respondent, citing a nearly two-year delay from the last installment date.

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## Issues and analysis

### Issue 1: Whether the appeal filed by the appellant is within the period of limitation prescribed under …

**Ratio:** The law on the commencement of limitation under Section 61(2) of the Insolvency and

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**Reasoning:** The NCLAT relied on the Supreme Court's judgments in V. Nagarajan v. SKS Ispat &

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**Interpretation:** Section 61(2) of the Code is interpreted strictly. The 'date of the order' for

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**Application:** In the present case, the impugned NCLT Order was 'Delivered on 21.04.2025'.

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## Parties

- **Judges:** N. Sesha…; MEMBER (JUD…; +2 more
- **Appellants:** Mukesh Sumermal…; Sole Proprietor…
- **Respondents:** R. D. Engineer…
- **Other parties:** Insolvency and…; Limitation…; +7 more

## Timeline

- **2020-10-26 — IBC Proceedings…**: Appellant's proceedings under Section 9 of the IBC, 2016, initiated against the…
- **2021-04-16 — Petition Withdrawn via…**: The Company Petition was withdrawn by an order, pursuant to a Settlement Agreement…

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