NCLT Kolkata admits Barasat Real Estate Projects into insolvency on NBFC's plea

The Kolkata bench of the National Company Law Tribunal (NCLT) has admitted Barasat Real Estate Projects Private Limited into the corporate insolvency resolution process. The order, pronounced on 16 October 2026, came on a petition by K.L. Support Private Limited, a non-banking financial company (NBFC), which claimed a default of Rs 1,25,22,095 as on 11 June 2025.

What Happened

According to the order, the NBFC said it lent the company Rs 1.05 crore in three tranches in February and March 2020 as a short-term loan with quarterly interest. It told the tribunal that the company paid interest up to the 2021-22 financial year, made a payment of Rs 5 lakh on 14 April 2023, and later confirmed a balance of Rs 1,22,47,286 in a signed confirmation of accounts dated 1 April 2024.

The company opposed the petition. Per the order, it argued that the interest rate had been raised without its consent, that some payments had not been credited, that inter-group dues should be adjusted, and that it was solvent. The order records that the company admitted taking the loan.

The tribunal held that, once it is satisfied that a default has occurred, the application is complete and no disciplinary case is pending against the proposed interim resolution professional, it is bound to admit the application. Finding those conditions met, it admitted the petition and appointed an interim resolution professional.

What It Means

Admission into insolvency is not a finding of fraud or mismanagement. A moratorium under Section 14 of the Insolvency and Bankruptcy Code now bars suits against the company, the sale of its assets and recovery of security, including under the SARFAESI Act. Control of the company passes to the interim resolution professional, who must make a public announcement within three days inviting claims.

Creditors of the company, including any homebuyers, should watch for that announcement, which will set out how and by when claims must be filed. The tribunal has listed the case on 30 November 2026 for a progress report. The NCLT's order may be appealed to the National Company Law Appellate Tribunal (NCLAT).

Source: NCLT order