It is other way around. NCLAT has given their opinion in thre four-five points as seen in their judgement report. But, COSMIC CRF is saying in Supreme Court that the passed order has reference of incorrect findings contrary to the records available.
Above wordings is termed as factual errors.
Restoration application of Myotic is admitted and disposed today.
Now the path for CosmicCRF is becoming clear.
Next hearing held on 04.09.25 related with the IR & DFC for necessary directions & approvals.
We are reaching towards the final verdict!
Kindly share the link to the verdict. Without reading the order, it is difficult to assess the outcome.
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In any case, Myotic non-restoration / ineligibility does not automatically cure Cosmic CRF’s ineligibility.
Both are unrelated matters. The only advantage for Cosmic CRF is that, if Cosmic CRF is found eligible, there appears to be no competitor “as of now”. If the entire process starts again, there is nothing to stop other competitors or even Myotic to apply again and compete (it may be eligible on its own without consortium).
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In any case, Cosmic CRF still needs to prove that its ineligibility was on faulty grounds or to establish that its eligibility is clear.
Yes, you are absolutely right.
1. In last verdict of NCLAT, both myotic and cosmic CRF were became ineligible.
2. In todays hearing, Myotic voluntarily withdrawn from the competition to acquire amzen and they asked for to return the bid amount (about 1.4Cr).
3. As per SC, cosmic CRF has got the opportunity to prove about the factual errors listed on the previous order.
4. Next listing will be on 02.09.25 (Tuesday)
5. As you stated, if Cosmic CRF is unable to become eligible to participate, then RP has to initiate the process from the beginning. If so, its a big set back for Cosmic. How things will pan out for cosmic is we can not predict as of now. Hope for the best!
With thanks
On July 25, 2025, the National Company Law Appellate Tribunal (NCLAT) issued a judgment concerning two appeals, Company Appeal (AT) (Insolvency) No. 859 of 2025 and Company Appeal (AT) (Insolvency) No. 877 of 2025, which were heard together due to their interrelated factual matrix.
The Appellant for Both Cases:
The appellant in both these appeals was Myotic Trading Private Limited.
What the Appellant (Myotic Trading Private Limited) Asked For:
To direct the Resolution Professional (RP) and Committee of Creditors (CoC) to produce the minutes of the CoC meeting dated March 6, 2025, along with all supporting documents, and set aside the CoC’s decision declaring Cosmic CRF Ltd eligible under Section 29A of the IBC, 2016.To set aside and quash the RP’s letter dated March 7, 2025, addressed to Myotic.To grant an interim stay on the ongoing Challenge Mechanism and any further proceedings related to the resolution process of Amzen Transportation Industries Private Limited until the final disposal of the application.To take appropriate legal and regulatory action against Mr. Deepak Maini (the RP) for allegedly wilfully favouring Cosmic CRF Limited by manipulating a Senior Advocate’s opinion and misleading CoC members.To take appropriate legal and regulatory action against Mr. Aditya Vikram Birla and other responsible individuals for alleged continued abuse of corporate governance norms and financial irregularities.Ad-interim reliefs and costs.
The NCLAT, in this appeal, upheld the NCLT’s decision that Myotic Trading Private Limited was ineligible to be a Prospective Resolution Applicant (PRA) because its consortium partner, Fortune Global Solutions Pvt. Ltd., had withdrawn, causing Myotic’s individual net worth to fall below the required threshold of ₹100 crore. However, the NCLAT also declared Cosmic CRF Ltd. to be ineligible under Section 29A of the IBC and set aside the impugned order in CA (AT) (Ins) No. 859 of 2025 to that extent, directing the Corporate Insolvency Resolution Process (CIRP) to proceed from the stage of issuing a fresh Form ‘G’.
To direct the appointment of a new Interim Resolution Professional (IRP), replacing the current RP (Respondent No. 1, Deepak Maini).To direct the IRP to reconstitute the CoC, specifically excluding Prudent ARC Ltd. (Respondent 5) and W.L.D Investments Pvt. Ltd. (Respondent 6) as related parties, in accordance with Section 21(2) proviso of the IBC.To instruct the newly constituted CoC to appoint a Resolution Professional as per IBC provisions.To cancel the Request for Resolution Plan (RFRP) and Information Memorandum dated May 20, 2024, along with all related actions, due to non-compliance with IBC and CIRP Regulations.To grant an ad-interim stay on all CIRP proceedings until a new CoC is formed and a new RP is appointed.To direct the Insolvency and Bankruptcy Board of India (IBBI) to cancel Respondent No. 1’s Insolvency Professional license.For this appeal, the NCLAT partly allowed the appeal, remanding the matter back to the Adjudicating Authority for a fresh decision on merits after providing an opportunity of being heard to the parties, thereby setting aside the NCLT’s dismissal that was based on lack of locus standi.
Outcome of the Amzen Case if Myotic Trading’s Restoration Application is Disposed
Myotic’s Lack of Locus Standi:
Impact on Amzen’s CIRP if Myotic’s Application is Dismissed:
◦ If Myotic Trading’s restoration application on August 25, 2025, is dismissed, it would mean that Myotic Trading continues to lack the necessary locus standi to challenge aspects of Amzen Transportation Industries Pvt Ltd’s Corporate Insolvency Resolution Process (CIRP) in that specific application.
◦ This outcome would likely remove a procedural obstacle related to Myotic’s direct challenges to the CIRP and the appointment of the RP/CoC. It could allow the resolution process to proceed without further delays stemming from Myotic’s attempts to re-initiate these specific objections.
◦ However, it’s important to note that the broader issue of Cosmic CRF Limited’s eligibility, which Myotic’s applications were attempting to influence, is now being reconsidered by the National Company Law Appellate Tribunal (NCLAT) due to a Supreme Court directive. So, while Myotic’s direct legal challenge in this specific context might be disposed of, the underlying substantive issue remains active through the NCLAT review.
Chances for Cosmic CRF to Acquire Amzen
The chances for Cosmic CRF Limited to acquire Amzen Transportation Industries Pvt Ltd are currently uncertain and contingent upon the NCLAT’s re-evaluation of its eligibility.
• Prior Ineligibility by CoC (Initially): Cosmic CRF Limited was initially declared ineligible under various clauses of Section 29A of the Insolvency and Bankruptcy Code, 2016 (IBC) by the Committee of Creditors (CoC) on October 19, 2024. This decision was based on reports from professional agencies, AHSK & Co. and Priyanka Sharma & Associates (PSA), and led to the forfeiture of its earnest money deposit.
• NCLT Remand: Cosmic CRF challenged this, and on January 9, 2025, the NCLT partly allowed Cosmic’s application (IA/5392/2024) and remanded the matter back to the CoC, directing them to provide Cosmic CRF a fair opportunity to respond to the ineligibility reports.
• CoC Re-evaluation (Eligible): Following the NCLT’s remand, the CoC re-evaluated Cosmic’s eligibility. After considering conflicting reports (PSA still found Cosmic ineligible, while a Senior Advocate’s opinion declared it eligible), the CoC on March 6, 2025, approved a resolution declaring Cosmic CRF eligible with 100% votes.
• NCLAT’s Finding of Ineligibility: Despite the CoC’s later finding, the NCLAT, in its order dated July 25, 2025, found Cosmic CRF Limited ineligible under various clauses of Section 29A of the IBC. The NCLAT noted that multiple professional reports consistently concluded Cosmic was ineligible, with only the Senior Advocate’s opinion suggesting otherwise.
• Supreme Court’s Directive for NCLAT Review: Cosmic CRF Limited appealed the NCLAT’s July 25, 2025, order to the Supreme Court. On August 4, 2025, the Supreme Court disposed of the appeal without delving into the merits of Cosmic’s eligibility. Instead, it specifically directed Cosmic CRF Limited to present any factual errors in paragraphs 105 and 106 of the NCLAT’s order directly to the NCLAT, clarifying that the “bar of review should not come in the way of the NCLAT”. This means the issue of Cosmic CRF’s eligibility has been remanded back to the NCLAT for a factual reconsideration.
• Ongoing NCLAT Proceedings: On August 18, 2025, during a hearing for a new appeal filed by Myotic Trading (Company Appeal (AT) (Insolvency) No. 859 of 2025), the NCLAT specifically acknowledged the Supreme Court’s August 4, 2025, order and directed its production, indicating its relevance to the ongoing proceedings. Next hearing likely to be on 02.09.25.
Therefore, Cosmic CRF’s ability to acquire Amzen depends entirely on the outcome of the NCLAT’s fresh review based on the Supreme Court’s directive. If Cosmic CRF successfully convinces the NCLAT that there were factual errors in the previous ineligibility findings, its chances would improve significantly. Conversely, if the NCLAT reaffirms its ineligibility, Cosmic CRF will not be able to proceed with the acquisition. This legal back-and-forth implies that the resolution process for Amzen Transportation Industries Private Limited will likely experience further delays until Cosmic CRF’s eligibility is conclusively determined.
With thanks
Be and Make
Great summary of events! Thank you.
I would like to add one point though- Myotic and Cosmic CRF’s ineligibility are not apple to apple comparison.
Myotic simply wasn’t allowed to mid-way take place of the consortium after its partner withdrew. Myotic may be eligible on its own if the process begins again (noone has discussed or questioned its eligibility yet).
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Other the other hand, Cosmic CRF’s eligibility itself is being questioned and there is a considerable back and forth. If the process begins again, Cosmic CRF has to actively prove its eligibility. As for Myotic, noone has yet challenged its eligibility as a solo party.
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By any chance, can we get to access the reports of professional agencies, AHSK & Co. and Priyanka Sharma & Associates (PSA)? It would be interesting to understand the grounds and merits of their conclusion. If the grounds and merits are lacking substance, Cosmic CRF can challenge these findings as well.
Yes, I agree with you as it is not an apple to apple case.
Myotic is no way comparable with CosmicCRF.
The eligibility criteria for a resolution applicant required a minimum tangible net worth of ₹100 crores. While the consortium collectively met this, Myotic’s individual net worth was approximately ₹43.21 crores , and Fortune Global Solutions Pte. Ltd.'s was ₹140.69 crores. Upon Fortune’s departure, Myotic, acting alone, failed to meet the required ₹100 crore tangible net worth and was therefore ineligible to be considered a Prospective Resolution Applicant.
Following the NCLT’s remand, the CoC re-evaluated Cosmic’s eligibility. After considering conflicting reports (PSA still found Cosmic ineligible, while a Senior Advocate’s opinion declared it eligible), the CoC on March 6, 2025, approved a resolution declaring Cosmic CRF eligible with 100% votes.
So, at this point of time, when compared to Myotic, CosmicCRF has the chance to grab the Amzen.
CosmicCRF fighting legitimately in NCLAT after SC guidelines.
If CosmicCRF is able to “correct the factual errors contained in para 105, 106” then it has a 1000% chance!
In yesterday’s hearing also, the legal team submitted some past cases where NCLAT orders are revoked.
With thanks
