Supreme Court Dismisses Appeal for Concealing Facts in Arun Kumar Insolvency Case.


09 October 2025 Bankruptcy & Insolvency Law >> Business & Commercial Law  

The Supreme Court of India, in Arun Kumar v. Sripriya Kumar & Ors. (Civil Appeal No. 277 of 2024, decided on October 9, 2025), dismissed an appeal filed by the promoter of M/s. Arun Shelters Pvt. Ltd. for making a false statement before the Court in relation to an ongoing insolvency proceeding.

The appeal arose after Arun Kumar, the promoter of the corporate debtor, challenged the approved Resolution Plan under the Insolvency and Bankruptcy Code (IBC). The Resolution Plan had been approved by the Adjudicating Authority (NCLT) on November 4, 2022, and affirmed by the National Company Law Appellate Tribunal (NCLAT), Chennai.


 

 

In an affidavit dated December 13, 2023, filed to support his appeal, the appellant claimed that the Successful Resolution Applicant (SRA)—the consortium of Kamal Pasha and Sayed Fahad—had not commenced any work towards implementing the plan. However, the record before the Supreme Court showed that the SRA had already begun implementation in accordance with the approved timeline, including substantial payments under the terms of the plan.

Counsel for the lead secured creditor, Kotak Mahindra Bank, informed the Court that payments as mandated under paragraph 14.1(c) of the Resolution Plan—Rs. 13.80 crore within 45 days of approval, followed by Rs. 32.20 crore in stages—had been largely fulfilled, and that the plan had also been implemented concerning homebuyers and other creditors.

Observing that the appellant had willfully and deliberately misrepresented facts to secure admission of his appeal, the bench comprising Justice Sanjay Kumar and Justice Alok Aradhe held that a litigant cannot approach the Court with “unclean hands.” The judges stated that allowing such conduct would amount to permitting an abuse of the judicial process.

On this ground alone, the Supreme Court dismissed the appeal, concluding that the petitioner’s affidavit contained false statements intended to mislead the Court. All pending applications were disposed of accordingly.


INSOLVENCY AND BANKRUPTCY CODE, 2016