The Supreme Court of India dismissed appeals challenging the National Company Law Appellate Tribunal's (NCLAT) judgment concerning the Corporate Insolvency Resolution Process (CIRP) of Simbhaoli Sugars Limited . In an order dated August 07, 2026, the apex court found no grounds to interfere with the NCLAT's decision dated July 13, 2026, effectively upholding the tribunal's directions. This development marks a significant procedural milestone in the insolvency case that began when the National Company Law Tribunal initiated the CIRP on July 11, 2024, suspending the powers of the Board of Directors.

The appeals were filed by two distinct groups following the NCLAT's earlier ruling. Ms. Gursimran Kaur Mann, a promoter representing the Suspended Board of Directors, and Surender Pal Singh Mangat, representing farmers, had approached the Supreme Court to challenge the tribunal's disposal of their respective matters. The NCLAT had previously dismissed the appeal filed by Ms. Mann and disposed of the farmer's appeal with specific directions. The Supreme Court's dismissal confirms that the legal challenges at the appellate level have been exhausted, reinforcing the continuity of the insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

Key Details of the Supreme Court Order

The court addressed the distinct nature of claims filed by farmers, who are statutorily mandated to supply sugar to linked sugar companies. Justice K.V. Viswanathan and Justice Arun Palli noted that these claims stand on a different footing. Consequently, the court granted liberty to the appellants to agitate this specific issue in appropriate proceedings they may choose to initiate before the adjudicating authority. The judges emphasized that any such future proceedings would be decided in accordance with law, uninfluenced by observations in the impugned NCLAT order or the current Supreme Court order.

Regarding the promoter's appeal, the court acknowledged submissions from learned senior counsel Mr. Dhruv Mehta that the promoters intend to submit a proposal. The bench stated that promoters may exercise such rights as are available to them under the law. As and when these rights are exercised, the resulting proceedings will be decided in accordance with law. All pending applications associated with these civil appeals were also disposed of alongside the main orders.

Implications for Insolvency Process

Simbhaoli Sugars Limited remains under the Corporate Insolvency Resolution Process pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016. Since the initiation of the CIRP on July 11, 2024, the powers of the Board of Directors have been suspended. Mr. Anurag Goel (IBBI/IPA-001/IP-P-00876/2017-18/11460) serves as the Interim Resolution Professional (IRP), managing the company's assets and carrying out functions mandated under the code. The Supreme Court's order does not alter the operational control held by the IRP but clarifies the legal pathway for stakeholders to pursue specific claims related to statutory obligations and resolution proposals. The company continues to operate as an FSSC 22000, ISO 9001:2015, and ISO 14001:2015 certified entity during this period.

Simbhaoli Sugars Limited reported a net loss of ₹6,960.62 lakh for the financial year ended March 31, 2026, as the company continues to operate under the Corporate Insolvency Resolution Process (CIRP). The total income from operations for the year declined to ₹83,566.82 lakh from ₹99,669.05 lakh in the previous year. For the quarter ended March 31, 2026, the company recorded a net loss of ₹174.20 lakh on a total income from operations of ₹19,221.11 lakh.

The audited consolidated financial results were certified by Dayal Chand Popli, Chief Financial Officer, and taken on record by Anurag Goel, the Interim Resolution Professional (IRP), on July 13, 2026. The IRP assumed control of the management and operations of the company following an order by the National Company Law Tribunal (NCLT), Allahabad bench, dated July 11, 2024. Consequently, the Board of Directors and the Audit Committee did not consider or recommend these results, as their powers stand suspended under the Insolvency and Bankruptcy Code, 2016.

The National Company Law Appellate Tribunal (NCLAT) pronounced an oral judgement on July 13, 2026, dismissing an appeal filed by a promoter and disposing of an appeal filed by a farmer. The IRP relied on the assistance of key management personnel to prepare the financial statements, subject to disclaimers regarding the accuracy and completeness of the data provided by the former management.

Financial Performance

The company's financial performance for the quarter and year ended March 31, 2026, reflects the ongoing challenges during the insolvency resolution period.

The other equity balance stood at a negative ₹21,612.98 lakh as of March 31, 2026, compared to a negative ₹16,643.64 lakh in the previous year.