NCLAT Rejects MMTC Appeal Against NSEL Settlement, Upholds Finality After Supreme Court Affirmation

March 30, 2026 : The National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, has dismissed an appeal filed by MMTC Limited challenging the settlement scheme of National Spot Exchange Ltd. (NSEL), holding that the issue has attained finality after affirmation by the Supreme Court of India.

The Bench comprising Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member) was dealing with a challenge to the order dated 28 November 2025 passed by the National Company Law Tribunal (NCLT), Mumbai, which had approved a scheme of arrangement providing for a capped settlement of ₹31,950 crore to resolve claims arising out of the 2013 NSEL payment default.

At the outset, the Appellate Tribunal noted that it had already upheld the scheme in its judgment dated 15 January 2026, which was subsequently affirmed by the Supreme Court in Civil Appeal No. 1485 of 2026 on 9 March 2026. Applying the doctrine of merger, the Tribunal held that once the Supreme Court dismisses an appeal on merits, the earlier order merges with the apex court’s ruling and cannot be reopened.

MMTC had argued that the NCLT order contained incorrect recordings regarding the stance of investigative agencies such as the Enforcement Directorate, Economic Offences Wing, and authorities under the MPID Act, and that such misrecording amounted to fraud warranting recall of the scheme even after Supreme Court affirmation.

Rejecting this contention, the Tribunal held that the alleged discrepancies, at best, constituted incorrect findings and did not meet the legal threshold of fraud. It emphasized that none of the concerned agencies had challenged the scheme before the NCLT or in appeal, and in fact had participated in the proceedings without opposing it.

The Tribunal further observed that over 90% of creditors had approved the scheme, and MMTC, despite voting against it, had failed to file objections before the NCLT during the approval stage. In such circumstances, the Appellate Tribunal held that the plea of fraud could not be invoked to reopen a concluded scheme.

Referring to the Supreme Court’s dismissal of the civil appeal on merits, the Tribunal reiterated that the issue stands conclusively settled and cannot be re-agitated. Accordingly, finding no merit in the challenge, the NCLAT dismissed the appeal and disposed of the connected applications.

Case Details:
Case Title: MMTC Limited v. National Spot Exchange Ltd.
Case No.: Company Appeal (AT) No. 34 of 2026
Coram: Justice Yogesh Khanna (Judicial Member) and Ajai Das Mehrotra (Technical Member)