NCLAT Upholds NCLT's Resolution Plan Approval for Duncans Industries

The National Company Law Appellate Tribunal (NCLAT) dismissed petitions challenging the National Company Law Tribunal's (NCLT) approval of a resolution plan for Duncans Industries. The NCLAT clarified that renewal of tea garden leases is a matter for the West Bengal government and not associated with the NCLT approval.

The National Company Law Appellate Tribunal (NCLAT) has dismissed petitions against the National Company Law Tribunal's (NCLT) approval of a resolution plan for Duncans Industries, clarifying the matter of lease renewals is under the West Bengal government's purview.

The Kolkata bench of NCLT approved the resolution plan filed by Uniglobal Papers on October 18, 2024, which was contested by Merico Agro Industries and Nagri Farm Tea Co. The NCLT ordered Uniglobal Papers to apply for lease renewals and pursue possession, which was then challenged in appeals.

The NCLAT ruled that the NCLT's directions were only to grant the liberty to pursue lease renewal applications, with no opinion expressed on the renewal's merits, thereby reaffirming the state government's sole authority over such matters.

(With inputs from agencies.)