The Supreme Court on Tuesday dismissed an appeal filed by public sector undertaking MMTC Limited challenging the approval of a ₹1,950 crore settlement scheme proposed to resolve creditors' claims arising from the 2013 National Spot Exchange Limited (NSEL) payment default.
A Bench of Justices PS Narasimha and Alok Aradhe dismissed the appeal against a March 30 judgment of the National Company Law Appellate Tribunal (NCLAT), which had refused to interfere with the approval granted to the scheme by the National Company Law Tribunal (NCLT), Mumbai.
The settlement scheme, approved by the NCLT on November 28, 2025, seeks to settle claims of specified creditors arising from the August 2013 payment default at NSEL.
MMTC challenged the scheme on the grounds that it was prejudicial to public interest and contrary to public policy.
The NCLAT, comprising Judicial Member Justice Yogesh Khanna and Technical Member Ajai Das Mehrotra, rejected MMTC's appeal after noting that the scheme had received the approval of more than 90 per cent of creditors.
It also noted that although MMTC had voted against the scheme in May 2025, it had not filed objections before the NCLT during the proceedings for its approval.
The Tribunal noted that neither the Enforcement Directorate nor the Economic Offences Wing or the competent authority under the Maharashtra Protection of Interest of Depositors (MPID) Act had challenged the scheme.
It also referred to an order passed by the NCLT on September 17, 2025, recording that the EOW and the competent authority under the MPID Act had expressed no objection to the proposed arrangement.
The Tribunal further relied on an earlier round of litigation concerning the same settlement scheme.
On January 15, 2026, the NCLAT had dismissed a challenge filed by L.J. Tanna Enterprises Private Limited and others against the approval of the scheme.
The Supreme Court had subsequently upheld that decision on March 9, 2026.
The NCLAT noted that MMTC's challenge substantially overlapped with the issues raised in the earlier proceedings, although MMTC had emphasised its distinct position as a Central government undertaking dealing with public funds.
It held that the Supreme Court's dismissal of the earlier appeal on merits meant that the NCLAT's judgment had merged with the Supreme Court's decision and could not be challenged again before the appellate tribunal on the same grounds.
The Tribunal consequently dismissed MMTC's appeal.
This led to the appeal before the Supreme Court which was rejected today.
The Supreme Court's dismissal of MMTC's appeal leaves the approval of the settlement scheme undisturbed.
Additional Solicitor General Vikramjit Banerjee appeared for MMTC.