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NCLT Extends Sion-Panvel Tollways CIRP, Allows Fresh Resolution Process
Sion-Panvel Tollways is a company involved in a highway project.
It had entered a legal process because it could not meet its obligations.
The process was supposed to end on February 6, 2026, but the tribunal allowed more time.
A court order required the Maharashtra government’s Public Works Department to place ₹691 crore in a fixed deposit.
This money could make the company more valuable to potential rescuers or buyers.
Because of this change, the creditors were allowed to reconsider the plans they had received.
They rejected the earlier plans and will invite new ones.
The tribunal said the process was not illegal and dismissed a challenge by a suspended director.
The creditors will decide the next steps.
The NCLT Mumbai Bench allowed Sion-Panvel Tollways to restart its resolution process through a fresh Form G.
The tribunal granted extensions of 90 days, 45 days and 120 days to continue the CIRP.
A Bombay High Court direction requiring the Maharashtra PWD to deposit ₹691 crore changed the company’s value proposition.
The Committee of Creditors rejected existing resolution plans and approved issuing a fresh Form G with an 84.33% vote.
The NCLT dismissed suspended director Babu Narayan Rai’s challenge to actions taken after the original CIRP period expired.
- Who
- The NCLT Mumbai Bench, Sion-Panvel Tollways Pvt Ltd, its Resolution Professional, the Committee of Creditors, and suspended director Babu Narayan Rai.
- What
- The tribunal extended the company’s CIRP and allowed the resolution process to be rerun through a fresh Form G.
- Where
- Mumbai, before the Mumbai Bench of the National Company Law Tribunal.
- When
- The order was delivered on September 29, 2026; the article was dated September 30, 2026.
- Why
- A Bombay High Court direction concerning a ₹691-crore deposit materially changed the company’s value proposition and created grounds for reconsidering resolution plans.
Tribunal and Creditors
Suspended Director’s Challenge
Validity of post-expiry actions
Tribunal and Creditors
The NCLT held that rejecting earlier resolution plans, issuing a fresh Form G and seeking extensions were not illegal or non-est because exceptional circumstances existed.
Suspended Director’s Challenge
Babu Narayan Rai challenged actions taken by the Resolution Professional and Committee of Creditors after the CIRP period expired on February 6, 2026.
Need for a fresh resolution process
Tribunal and Creditors
The tribunal and creditors considered the ₹691-crore deposit direction a material change that justified reconsidering the company’s resolution plans.
Suspended Director’s Challenge
The challenge disputed the continuation and actions of the resolution process after the original deadline; the NCLT ultimately rejected the plea.
Key facts
- Company
- Sion-Panvel Tollways Pvt Ltd
- Tribunal
- Mumbai Bench of the National Company Law Tribunal
- CIRP extensions
- 90 days from February 6, 2026; 45 days from May 6, 2026; and a further 120 days
- Deposit involved
- ₹691 crore, to be deposited by the Maharashtra government’s Public Works Department in an interest-bearing fixed deposit
- Fresh Form G approval
- Approved by the Committee of Creditors with an 84.33% voting share
- Original CIRP initiation
- Ordered on March 17, 2023
- Related challenge
- Suspended director Babu Narayan Rai’s plea was dismissed
Quotes
NCLT Mumbai Bench
The tribunal deciding Sion-Panvel Tollways’ insolvency resolution applications
“the actions/decisions taken by Resolution professional and committee of creditors, the expiry of the CIRP period on 06.02.2026, including rejection of the earlier Resolution Plans, issuance of a fresh Form G and filing of the application seeking extension cannot be said to be illegal or non-est in the eye of law”
freepressjournal.in
Sources
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