NCLAT Rules on Interest Liability in Anil Ltd. Liquidation Case
Tribunal Enforces 12% Interest Mandate for Delayed Payment by Adani Infrastructure in Liquidation Process
In a significant ruling, the National Company Law Appellate Tribunal (NCLAT) has partially allowed an appeal filed by the Liquidator of Anil Ltd. against Adani Infrastructure & Developers Pvt. Ltd., the Successful Auction Purchaser (SAP), in a liquidation process under the Insolvency and Bankruptcy Code, 2016. The case revolved around the payment obligations of Adani Infrastructure, who had successfully bid for a property owned by Anil Ltd., which is under liquidation.
The crux of the appeal was the waiver of interest on the delayed payment of the balance sale consideration by Adani Infrastructure. Initially, the National Company Law Tribunal (NCLT), Ahmedabad, had exonerated Adani Infrastructure from paying interest on the balance consideration. The Liquidator, CA Ramchandra Dallaram Choudhary, challenged this decision, asserting that the payment timelines as stipulated in the IBBI (Liquidation Process) Regulations, 2016, are mandatory and that interest at 12% is applicable on delayed payments beyond 30 days.
In its judgment dated December 8, 2025, the NCLAT, led by Justice Ashok Bhushan and Barun Mitra, ruled that the timelines stipulated under Schedule-I, Rule 12 of the IBBI Regulations are indeed mandatory, and the successful bidder must pay 12% interest on any payment made beyond the initial 30-day period. The tribunal further clarified that the contractual doctrine of reciprocal promises does not apply to statutory provisions under the liquidation regulations, thus dismissing Adani Infrastructure's reliance on such principles.
However, the tribunal acknowledged the extension of the payment timeline granted by the NCLT on June 15, 2023, which allowed Adani Infrastructure to pay the balance consideration without interest until the resolution of certain encumbrances, specifically the attachment by the State Tax Department.
Ultimately, the NCLAT directed Adani Infrastructure to pay the 12% interest on the balance sale consideration for the period from January 28, 2023, to June 15, 2023, and instructed the payment to be made within two weeks. The tribunal's decision underscores the strict adherence to statutory timelines in liquidation processes, reinforcing the mandatory nature of interest on delayed payments.
This ruling serves as a crucial precedent in insolvency and bankruptcy proceedings, emphasizing the importance of compliance with statutory regulations and timelines.
Bottom Line:
Sale under Liquidation Process - Payment timelines as per Schedule-I Rule 12 of IBBI (Liquidation Process) Regulations, 2016 are mandatory, and interest at 12% is liable to be paid on balance consideration after the expiry of 30 days - Extension of timelines by Adjudicating Authority permissible under certain conditions.
Statutory provision(s): Insolvency and Bankruptcy Code, 2016, IBBI (Liquidation Process) Regulations, 2016 - Schedule-I, Rule 12, Indian Contract Act, 1872 Section 51
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