# In the matter of Alchemist Limited

> NCLT judgment dated 2026-02-03. Citation: TCN-2026-NCLT-00103. The Directorate of Enforcement (ED) filed an application under Section 60(5) of the Insolvency…

- **Court:** NCLT
- **Order date:** 3 Feb 2026
- **Citation:** TCN-2026-NCLT-00103
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-new-delhi/alchemist-limited-b0a3a4c4

## Summary

### Background

The Directorate of Enforcement (ED) filed an application under Section 60(5) of the Insolvency and Bankruptcy Code (IBC) seeking a stay on the Corporate Insolvency Resolution Process (CIRP) initiated against Alchemist Limited. The ED alleged that the CIRP was initiated to legitimize proceeds of crime and frustrate ongoing criminal proceedings under the Prevention of Money Laundering Act (PMLA).

## Facts

The Directorate of Enforcement (ED) filed an application seeking a stay on the CIRP initiated against Alchemist Limited.

The ED alleged that Alchemist Group entities collected funds from the public through fraudulent investment schemes and siphoned them into Alchemist Limited.

The Committee of Creditors (CoC) was dominated by Alchemist Group entities.

The Resolution Professional (RP) had a prior association with the Alchemist Group.

The ED had attached properties of Alchemist Limited under the PMLA.

The NCLT found that the CIRP was not initiated for the genuine purpose of insolvency resolution.

The NCLT recalled the CIRP initiated against Alchemist Limited and imposed a penalty on the Operational Creditor.

## Issues and analysis

### Issue 1: Whether the CIRP against Alchemist Limited was initiated for the genuine purpose of insolvency …

**Ratio:** Section 65 of the IBC embodies a clear legislative mandate that the insolvency resolution

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**Reasoning:** The NCLT found that the CIRP was initiated through a Section 9 application, but the

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**Interpretation:** The NCLT interpreted Section 65 of the IBC to mean that the insolvency

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**Application:** The NCLT applied Section 65 of the IBC to the facts of the case and concluded

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## Parties

- **Judges:** MANNI SANKARIAH…; ATUL CHAT…
- **Appellants:** Directorate of…; DIRECTORATE OF…
- **Respondents:** Alchemist L…
- **Other parties:** M/s Alchemist…; M/s Technology…; +5 more
- **Advocates:** Zohaib Ho…; Vivek Gu…; +4 more

## Timeline

- **2026-02-03 — Order Del…**: The order was delivered…
- **N/A — Application…**: Directorate of Enforcement filed an…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

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