NCLT Rejects Belated Bidder Plea To Call Lenders' Meeting To Reopen EOI In Sebacic Insolvency

The National Company Law Tribunal (NCLT) at Ahmedabad has rejected a plea filed by Dysetuff Industries Ltd seeking directions to convene a special meeting of the Committee of Creditors (CoC) to reopen the Expression of Interest (EOI) process in the insolvency of Sebacic India Ltd, holding that Corporate Insolvency Resolution Process (CIRP) timelines cannot be relaxed once they have expired.

Dysetuff Industries, which described itself as a prospective resolution applicant, had approached the tribunal after the EOI process had closed.

In an order dated November 6, 2025, a bench of Judicial Member Shammi Khan and Technical Member Sanjeev Sharma refused the plea observing that a late entry would disrupt the time-bound Corporate Insolvency Resolution Process (CIRP) and interfere with the commercial decisions of the Committee of Creditors (CoC).

“The CIRP is time bound, and the process needs to be adhered to and timelines respected by all the stakeholders,” the tribunal observed.

Sebacic India, which is engaged in the manufacture of chemical products used in industrial applications, was admitted into CIRP in May 2024 following an application by an operational creditor.

The resolution professional initially invited EOIs through Form G (official Invitation for Expression of Interest) in July 2024. However, the process was stayed for several months due to litigation challenging the constitution of the CoC.

After the stay was lifted in July 2025, the resolution professional reconstituted the CoC and issued a fresh invitation, fixing August 15, 2025 as the last date for submission of EOIs.

The final list of prospective resolution applicants was published in September 2025, followed by circulation of the information memorandum and evaluation matrix. The deadline for submission of resolution plans was later extended up to November 5, 2025.

Dysetuff Industries Ltd approached the tribunal seeking permission to submit its EOI beyond the prescribed deadline, claiming it became aware of the fresh invitation only in October 2025 through its business network.

It urged the NCLT to exercise its inherent powers under Rule 11 of the NCLT Rules, 2016 and direct the resolution professional to convene a special meeting of the CoC to consider its request.

Rejecting the plea, the tribunal held that EOI timelines under the CIRP Regulations are mandatory and cannot be relaxed once the process has progressed to an advanced stage. It noted that Dysetuff's request came after the EOI window had closed and without any approval from the CoC.

“Rule 11 cannot be invoked to extend timelines at this stage as it would disrupt the commercial wisdom of CoC and prejudice existing prospective resolution applicants who have very meticulously and timely adhered to the process and timelines. The inherent powers under Rule 11 are to be exercised sparingly and in consonance with the Code not to condone non-compliance with mandatory Regulations", it said.

The tribunal concluded that a prospective resolution applicant is expected to remain vigilant about ongoing CIRP proceedings and cannot seek a special CoC meeting to reopen a closed EOI process, as such an indulgence would delay the CIRP and prejudice other bidders who complied with the prescribed timelines.

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