Mumbai, September 30, 2026: The Mumbai Bench of the National Company Law Tribunal (NCLT) has again granted extensions for completing the Corporate Insolvency Resolution Process (CIRP) of Sion-Panvel Tollways Pvt Ltd, observing that exceptional circumstances warranted continuation of the resolution process.
The tribunal granted a 90-day extension from February 6, 2026, followed by a 45-day extension from May 6, 2026, and a further 120-day extension sought by the Resolution Professional. The order was delivered on September 29.
NCLT Allows Fresh Resolution Process
“In view of the facts and circumstances of the case and the discussion hereinabove, we are of the considered view that 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,” the order copy reads.
The NCLT also allowed the resolution process to be re-run through a fresh Form G. The Committee of Creditors (CoC), in its June 1 meeting, had approved the rejection of the existing resolution plans and issuance of a fresh Form G with an 84.33% voting share.
The tribunal noted that an interim order of the Bombay High Court dated December 4, 2025, directing the Maharashtra government's PWD to deposit Rs 691 crore in an interest-bearing fixed deposit, had materially altered the value proposition of the corporate debtor. The development, according to the NCLT, created a fresh circumstance warranting reconsideration of the resolution process.
The NCLT relied on the Supreme Court's ruling in Committee of Creditors of Essar Steel India Ltd v. Satish Kumar Gupta, which recognises that the 330-day CIRP timeline can be extended in exceptional circumstances where there is a genuine possibility of resolution and continuation serves the interests of stakeholders.
CoC To Decide Further Resolution Steps
The tribunal held that an exceptional case had been made out and granted the extensions sought by the Resolution Professional. It, however, left the remaining decisions concerning the resolution process to the commercial wisdom of the CoC.
In a connected application, the NCLT also dismissed a plea by suspended director Babu Narayan Rai challenging the actions taken by the Resolution Professional and CoC after the CIRP period expired on February 6, 2026.
The tribunal held that the subsequent developments, particularly the Rs 691-crore deposit direction, justified a fresh look at the resolution process and that the actions taken thereafter could not be termed illegal or non-est.
Background
Sion-Panvel Tollways Pvt Ltd was incorporated on August 12, 2009, as a Special Purpose Vehicle for the Sion-Panvel Special State Highway Project under a Concession Agreement dated January 19, 2011.
Disputes arose with the Public Works Department (PWD) over toll charges and were referred to the Dispute Resolution Committee pursuant to the Bombay High Court's order dated September 8, 2015.
On account of continued default, the corporate debtor issued a Termination Notice dated November 28, 2017, and invoked arbitration, seeking interim relief under Section 17 of the Arbitration and Conciliation Act, 1996 (A&C Act), for Rs 691 crore against the PWD. Meanwhile, the CIRP was initiated pursuant to an order dated March 17, 2023.
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The tribunal, through its order dated October 9, 2025, in IA No. 3982 of 2025, granted a further extension of 120 days, noting the pendency of two resolution plans and the arbitral proceedings, while directing that no further extension be granted.
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