NCLT Kolkata Orders Recovery for McNally Bharat Engineering Company Limited, Directing Refunds from Key Entities
Mcnally Bharat Engineering Company Limited secured a favorable monetary recovery order from the National Company Law Tribunal (NCLT), Kolkata Bench, regarding preferential transactions under the Insolvency and Bankruptcy Code, 2016.The NCLT’s order, dated June 12, 2026, addresses an application filed by the company's erstwhile Resolution Professional under Section 60(5) of the Insolvency and Bankruptcy Code. The Tribunal directed specific entities to refund amounts to McNally Bharat Engineering Company Limited.
Key details concerning the NCLT order are as follows:
| Particulars | Details |
|---|---|
| Authority | National Company Law Tribunal, Kolkata Bench |
| Order Date | June 12, 2026 |
| Beneficiary of Order | McNally Bharat Engineering Company Limited |
| Directed Refunds | UCO Bank to refund INR 9.07 Crore; Joint Venture entities (McNally-Trolex JV, McNally-AML JV and McNally-Trolex- Kilburn JV) to refund INR 15.18 Crore. |
The Tribunal mandated that all directed refunds be provided together with interest at a rate of 9% per annum, calculated from the date of the respective transaction until repayment.
This order results in a favorable monetary recovery of approximately INR 24.25 Crore (plus applicable interest) for McNally Bharat Engineering Company Limited. The recovered amounts are set to be applied in accordance with Clause 5.14 of the company's approved Resolution Plan and the distribution mechanism defined under Section 53 of the Insolvency and Bankruptcy Code, 2016.
The impact of this NCLT Order has been accounted for in the unaudited financial results of McNally Bharat Engineering Company Limited for the quarter ended June 30, 2026, which were filed with the Stock Exchanges.
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