NSEL settlement scheme: approved by more than 90 per cent of creditors, according to the NCLAT, and opposed by MMTC, which voted against it in May 2025 but filed no objections before the NCLT. The Supreme Court has now dismissed MMTC’s appeal.
New Delhi: Dismissing an appeal by MMTC Limited on Tuesday, the Supreme Court left undisturbed the 30 March judgment of the National Company Law Appellate Tribunal (NCLAT), which had declined to interfere with the approval by the National Company Law Tribunal (NCLT), Mumbai, of a Rs 31,950 crore settlement scheme for creditors of National Spot Exchange Limited (NSEL). [MMTC Limited v. Respondents (title not available)]
The appeal was heard by Justice P.S. Narasimha and Justice Alok Aradhe. Additional Solicitor General Vikramjit Banerjee appeared for MMTC.
What the dismissal leaves in place
The approval of the settlement scheme stands. A public sector creditor’s attempt to reopen a resolution backed by an overwhelming majority of creditors has come to an end.
The Supreme Court’s detailed reasons are not available at the time of writing. The account of the NCLAT’s findings below is drawn from the tribunal’s judgment as placed before the Court.
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How the scheme came to be challenged
The scheme, which seeks to settle creditors’ claims arising from the August 2013 payment default at NSEL, was approved by the NCLT, Mumbai on 28 November 2025. MMTC’s case was that it was prejudicial to public interest and contrary to public policy.
The appellate tribunal’s three points
The NCLAT weighed three things. More than 90 per cent of creditors had approved the scheme. MMTC voted against it in May 2025 but did not file objections before the NCLT. And the Enforcement Directorate, the Economic Offences Wing and the competent authority under the Maharashtra Protection of Interest of Depositors (MPID) Act did not challenge it; on 17 September 2025 the NCLT had recorded that the EOW and the MPID authority had no objection.
MMTC’s challenge, the tribunal also found, overlapped substantially with earlier proceedings in which it had dismissed a challenge by L.J. Tanna Enterprises Private Limited and others on 15 January 2026. The Supreme Court upheld that decision on 9 March 2026. Because the Supreme Court dismissed the earlier appeal on merits, the NCLAT held, its judgment had merged into the Supreme Court’s decision, and the same grounds could not be raised again before the appellate tribunal. MMTC had stressed its position as a Central government undertaking dealing with public funds.
Case Details: MMTC Limited v. Respondents (case number and full cause title not available), appeal against NCLAT judgment dated 30 March 2026, order dated 13 October 2026.
Bench: Justice P.S. Narasimha and Justice Alok Aradhe.
Appearances: For MMTC Limited, Additional Solicitor General Vikramjit Banerjee.