1 week ago
NCLT Rejects Daaraa Bid To Recover Machinery From Damara Gold
The National Company Law Tribunal, or NCLT, considered a dispute about machinery owned by Damara Gold.
Daaraa Advance Manufacturing Solutions said it had leased the machinery.
It asked to take the machinery away and recover gold residue allegedly stuck inside it.
Damara Gold was going through a legal insolvency process because of unpaid debts.
The tribunal said the machinery had to stay with the Resolution Professional managing that process.
It also questioned Daaraa’s connection with Damara Gold’s former management.
The tribunal said Daaraa had not previously mentioned the gold residue claim.
Daaraa was invited to bid for leasing the machinery but did not submit an offer, so the tribunal rejected its application.
The NCLT rejected Daaraa Advance Manufacturing Solutions’ request to recover and relocate machinery belonging to Damara Gold.
Daaraa claimed the machinery was leased under an agreement dated April 1, 2025.
The company also sought recovery of about 600 grams of gold residue allegedly embedded in the machinery.
The tribunal ruled that the machinery must remain under the Resolution Professional’s custody during Damara Gold’s CIRP.
The NCLT upheld leasing the machinery through an Expression of Interest process, which Daaraa did not join.
- Who
- Daaraa Advance Manufacturing Solutions, Damara Gold, the Resolution Professional, Punjab National Bank, and the National Company Law Tribunal.
- What
- The NCLT rejected Daaraa’s plea to recover and relocate Damara Gold’s machinery and to recover alleged gold residue.
- Where
- The case was considered by the National Company Law Tribunal in Mumbai.
- When
- The lease agreement was dated April 1, 2025; Damara Gold entered CIRP on December 8, 2025; possession was taken on January 22, 2026; and the relevant process occurred in January and February 2026.
- Why
- The tribunal held that the machinery belonged to Damara Gold and had to remain under the Resolution Professional’s custody during CIRP; it also found Daaraa’s gold-residue claim unsupported and noted that Daaraa did not participate in the leasing process.
Daaraa’s position
Resolution Professional and tribunal’s position
Machinery lease
Daaraa’s position
Daaraa claimed the machinery had been leased to it under an Equipment Lease Agreement dated April 1, 2025, and sought permission to recover and relocate it.
Resolution Professional and tribunal’s position
The Resolution Professional and tribunal treated the machinery as property of Damara Gold that had to remain under custody and control during CIRP.
Gold residue claim
Daaraa’s position
Daaraa sought to recover about 600 grams of gold dust or residue allegedly embedded in the machinery.
Resolution Professional and tribunal’s position
The tribunal said the claim had not been raised in earlier correspondence and appeared to be an afterthought, particularly after the Resolution Professional took possession.
Future leasing of machinery
Daaraa’s position
Daaraa did not submit an Expression of Interest after being invited to participate in the leasing process.
Resolution Professional and tribunal’s position
The tribunal upheld the Resolution Professional’s decision to invite Expressions of Interest and said Daaraa’s failure to participate undermined its position.
Key facts
- Applicant
- Daaraa Advance Manufacturing Solutions Pvt Ltd
- Corporate debtor
- Damara Gold Pvt Ltd
- Legal proceeding
- Corporate insolvency resolution process under the Insolvency and Bankruptcy Code
- Creditor
- Punjab National Bank
- Reported default
- More than ₹39 crore, mainly arising from invocation of bank guarantees worth ₹54.34 crore
- Machinery issue
- The tribunal ordered that the machinery remain under the Resolution Professional’s custody
- Gold residue claim
- Daaraa claimed approximately 600 grams of gold dust or residue was embedded in the machinery
- Leasing process
- The Committee of Creditors approved the process on January 29, 2026; Daaraa was invited but did not submit an Expression of Interest
Quotes
National Company Law Tribunal
Tribunal adjudicating Daaraa Advance Manufacturing Solutions’ application
“Had the Applicant intended to take the plant and machinery on lease, it could have participated in the process.”
freepressjournal.in
Sources
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