National Company Law Appellate Tribunal
Adavalli Rajendra Prasad & Ors vs Kalvakolanu Murali Krishna Prasad ... on 10 April, 2026
NATIONAL COMPANY LAW APPELLATE TRIBUNAL
AT CHENNAI
(APPELLATE JURISDICTION)
Company Appeal (AT) (CH) (Ins) No.213/2026
(IA Nos. 601 & 602/2026)
In the matter of :
MR. ADAVALLI RAJENDRA PRASAD
(Suspended Director of the Corporate Debtor)
Villa No. 6, Maple Town, Suncity,
Hyderabad --500086, Telangana,
India ... APPELLANT NO.1
MR. KESIDI SREEDHAR REDDY
(Suspended Director of the Corporate Debtor)
2-4-1053/1/302, Road No-4, Samathapuri Colony,
Near Bhavya Hospital, Alkapuri Colony,
Ramakrishnapuram, Hyderabad --500102,
Telangana, India. ... APPELLANT NO.2
V
MR. KALVAKOLANU MURALI KRISHNA PRASAD
(Erstwhile Chairman of the Monitoring Committee and Resolution Professional
of the Corporate Debtor)
H. No. 8-27, Plot No. 106, Road No. 10,
Vyshali Nagar, Gaytri Nagar, Karmanghat,
Jilelguda, Hyderabad --500079,
Telangana, India ... RESPONDENT
Present :
For Appellant : Mr. Amir Bavani, Ms. Rishika Kumar &
Mr. Anirban Aly Mandal, Advocates
Comp App (AT) (CH) (INS) No. 213 / 2026 Page 1 of 4
ORDER
(Hybrid Mode) 10.04.2026:
The instant company appeal is circumscribed by a narrow set of facts, which does not require a detailed scrutiny by this Appellate Tribunal, while we are dealing with the propriety of the impugned order dated 05.03.2026 that has been passed by Ld. NCLT, Hyderabad Bench in IA (IBC)/261/2026 that was preferred in IA (IBC)/1033/2025.
2. The Appellant contends that, during the pendency of IA (IBC)/1033/2025, there were requisite reasons available with the Appellant to file the application IA (IBC)/261/2026, because of passing of the order by the Ld. Tribunal on 20.01.2026 in IA No. 39 of 2026, observing thereof owing to the fact that, as per the report regarding complete implementation of Resolution Plan, and since the distribution as already been carried. The Resolution Professional was discharged.
3. Drawing its source from the effect of this order, as to what implication will it have in carrying the proceedings of IA (IBC)/1033/2025, whether still be decided on merits. The Appellant filed IA (IBC)/261/2026 praying thereof that owing to the order passed on 20.01.2026, IA (IBC)/1033/2025 has been rendered infructuous because the Respondent has become a functus officio by operation of law and the order dated 20.01.2026.
4. When this application came up for consideration before the Ld. Tribunal on 05.03.2026, the Ld. Tribunal proceeded to pass the following orders: Comp App (AT) (CH) (INS) No. 213 / 2026 Page 2 of 4
"This application has been filed in IA(IBC)/1033/2025 praying to dismiss the IA(IBC)/1033/2025 on the ground that the Respondent has become functusoffico because of the order dated 20.01.2026 passed by this Authority. This fact can be brought to our notice simply by filing an IA for taking on record the said document. Instead of this, the applicant has changed the nomenclature by submitting that this application be disposed of along with IA(IBC)/1033/2025 as the Respondent has been functus-offico.
In view of the submissions made in the application and particularly the fact that the order dated 20.01.2026 has been passed by this Authority after filing of IA(IBC)/1033/2025, this application is disposed of with directions that the said order be made part of the IA(IBC) 1033/2025".
5. The Ld. Tribunal, while recording its anguish as to the manner in which the factum of the order of 20.01.2026 was attempted to be placed before Ld. Tribunal, the Ld. Tribunal has proceeded to dispose of the IA with the direction that the order dated 20.01.2026, will be made part of IA (IBC)/1033/2025. If we see the impugned order in its entirety, there was no conclusive decision that had been taken on IA (IBC)/261/2026, except for deferring consideration of the effect of an order of 20.01.2026 on IA (IBC)/1033/2025 when the said IA is to be considered on merits.
6. In that eventuality, at this moment, there cannot be a direct prejudice to the Appellant, where the direction is for deferring the consideration of the effect of an order dated 20.01.2026 on IA (IBC)/1033/2025. While closing this company appeal, we dispose of it with the request to Ld. Tribunal that when the said IA is taken up for consideration, which we are informed that it is likely to be listed for Comp App (AT) (CH) (INS) No. 213 / 2026 Page 3 of 4 consideration on 27.04.2026, the Ld. Tribunal would consider to answer first the effect of the order dated 20.01.2026 of IA (IBC)/1033/2025, as to whether at all, the circumstances do require consideration of IA (IBC)/1033/2025 on merits.
Subject to the aforesaid, this company appeal stands closed.
[Justice Sharad Kumar Sharma] Member (Judicial) [Jatindranath Swain] Member (Technical) SN/AK/RS Comp App (AT) (CH) (INS) No. 213 / 2026 Page 4 of 4