# Phoenix ARC Limited vs. Rajesh Jhunjhunwala & Anr.

> NCLAT judgment dated 2026-10-06. Citation: TCN-2026-NCLAT-00312. Phoenix ARC Limited, acting as a Financial Creditor, appealed an order from the National…

- **Court:** NCLAT
- **Order date:** 6 Oct 2026
- **Citation:** TCN-2026-NCLAT-00312
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/phoenix-arc-limited-vs-rajesh-jhunjhunwala-erstwhile-rp-92l3m

## Summary

### Background

Phoenix ARC Limited, acting as a Financial Creditor, appealed an order from the National Company Law Tribunal (NCLT), Mumbai Bench, dated 23.07.2026. This Impugned Order rejected the Financial Creditor's application under Section 33(1A) of the Insolvency and Bankruptcy Code, 2016 (IBC) for the restoration of the Corporate Insolvency Resolution Process (CIRP) and instead directed the liquidation of the Corporate Debtor, Supreme Best Value Kolhapur (Shiroli) Sangli Tollways Private Limited. The Committee of Creditors (CoC) had unanimously (100% voting share) resolved to seek restoration of the CIRP and rejected liquidation, believing a further resolution process was commercially viable. The NCLT's decision was primarily based on the reasoning that the Corporate Debtor's

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## Facts

The appeal is filed by Phoenix ARC Limited, a Financial Creditor, against an NCLT order dated 23.07.2026.

The NCLT order rejected an application under Section 33(1A) of the IBC for restoration of CIRP and directed liquidation of the Corporate Debtor.

The Corporate Debtor is Supreme Best Value Kolhapur (Shiroli) Sangli Tollways Private Limited.

Rajesh Jhunjhunwala is the erstwhile Resolution Professional (R-1) of the Corporate Debtor.

Mr. Shailesh Pranlal Bhuta is the Liquidator of the Corporate Debtor (R-2).

The Committee of Creditors (CoC) had unanimously (100% voting share) resolved to seek restoration of the CIRP and rejected liquidation.

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## Issues and analysis

### Issue 1: Whether the nature and extent of the Adjudicating Authority's power, under Section 33(1A) of the …

**Ratio:** The commercial wisdom of the CoC, especially when unanimous and exceeding the statutory

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**Reasoning:** The NCLAT distinguished Section 33(1A) from Sections 30(2) and 31, noting that 33(1A)

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**Interpretation:** Section 33(1A) grants the Adjudicating Authority a discretionary power, but

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**Application:** In this case, the CoC's resolution for restoration was unanimous (100% voting

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## Parties

- **Judges:** Mohammad Faiz…; Naresh Sa…
- **Appellants:** Phoenix ARC…; Trustee of…
- **Respondents:** Supreme Best…; Rajesh Jhunjhunwal…
- **Other parties:** Committee of…; Shailesh Pranlal…
- **Advocates:** Gaurav…; Chitra Re…; +4 more

## Timeline

- **2025-08-25 — CIRP Commen…**: The Corporate Insolvency…
- **2025-10-24 — Original Form G…**: The original Form G was published,…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 61 — Appeals and Appellate Authority](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-61)

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