# In the matter of NIRMAL LIFESTYLE LIMITED

> NCLT judgment dated 2026-01-08. Citation: TCN-2026-NCLT-00045. The case involves an application filed by the Original Financial Creditor, IDBI Trusteeship…

- **Court:** NCLT
- **Order date:** 8 Jan 2026
- **Citation:** TCN-2026-NCLT-00045
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-mumbai/nirmal-lifestyle-limited-5ea130a0

## Summary

### Background

The case involves an application filed by the Original Financial Creditor, IDBI Trusteeship Services Limited, seeking the revival of a Section 7 petition initially filed for Company Petition No. 4412 of 2019 and for recall of the order dated 09.02.2022, which had withdrawn the petition based on consent terms dated 05.08.2021. The Financial Creditor filed Interlocutory Application No. 3196(MB)/2022 seeking recall of the withdrawal order and restoration of the Company Petition, which was rejected by the Adjudicating Authority on 21.12.2022. The Financial Creditor then appealed to NCLAT.

## Facts

Original Financial Creditor, IDBI Trusteeship Services Limited, filed an application seeking revival of Section 7 petition initially filed for Company Petition No. 4412 of 2019.

The petition was initially withdrawn based on consent terms dated 05.08.2021.

Financial Creditor filed Interlocutory Application No. 3196(MB)/2022 seeking recall of the withdrawal order and restoration of the Company Petition.

The Adjudicating Authority rejected the Interlocutory Application on 21.12.2022.

The Financial Creditor appealed to NCLAT, which allowed the appeal on 15.05.2023, setting aside the Adjudicating Authority's order.

The NCLAT found that the Adjudicating Authority had erred in rejecting the revival application, as the consent terms contemplated a revival clause in case of default.

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## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in rejecting the revival application filed by the …

**Ratio:** The NCLAT held that the Adjudicating Authority committed an error in rejecting the

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**Reasoning:** The NCLAT reasoned that rejecting the revival application would deny the Financial

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**Interpretation:** The NCLAT's interpretation emphasizes the importance of upholding the terms of

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**Application:** The NCLAT's decision was applied to set aside the Adjudicating Authority's

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## Parties

- **Judges:** LAKSHMI G…; Hariharan…; +2 more
- **Appellants:** IDBI Trusteeship…
- **Respondents:** Nirmal Lifestyle…
- **Other parties:** Ajit Gyanchand…; Birendra Kumar…
- **Advocates:** Rohit G…; Simil Pu…

## Timeline

- **2019 — Initial F…**: Company Petition No. 4412(MB)/2019…
- **2021-05-08 — Consent…**: Petition withdrawn…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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