Siti Supreme Court stay blocks lender remittance during CIRP

Nov 02, 2026•3 min read

Siti Networks Ltd

SITINET

Ask Iris

Siti Networks Limited says a Supreme Court stay prevents financial creditors from returning amounts collected during the Corporate Insolvency Resolution Process, or CIRP, stay period and bars payments to operational creditors for related liabilities. The restriction supersedes a July 31, 2025 National Company Law Appellate Tribunal direction to return the amounts with accrued interest.

Why has Siti's lender remittance been halted?

Siti's lender remittance has been halted because certain financial creditors appealed the National Company Law Appellate Tribunal, or NCLAT, judgment dated July 31, 2025 before the Supreme Court. In its November 2, 2026 disclosure, Siti said the Supreme Court has stayed financial creditors from remitting amounts received during the CIRP stay period. The filing does not disclose the value of the collections subject to the stay.

The Supreme Court direction also means no payments can be made to operational creditors for liabilities relating to the CIRP stay period, according to the November 2 filing. This restriction applies alongside the stay on remittance by financial creditors. Siti said changes or additions resulting from the Supreme Court appeals would be incorporated in subsequent filings.

The dispute stems from the CIRP admission order dated February 22, 2023. Siti director Shilpi Asthana challenged that order before the NCLAT, which on March 7, 2023 directed that operation of the admission order would remain stayed pending the appeal. Transactions and appropriations made in that intervening period are the subject of the later litigation.

What did the NCLT and NCLAT order on stay-period funds?

The National Company Law Tribunal, Mumbai Bench, or NCLT, held on October 1, 2024 that Siti's insolvency commencement date was February 22, 2023 and that the Insolvency and Bankruptcy Code, 2016 moratorium applied during the stay period. The NCLT said transactions and appropriations undertaken in that period were to be reversed to Siti's accounts.

The October 1, 2024 order distinguished those appropriations from ordinary-course spending. It said expenses incurred to keep Siti operating as a going concern were to be protected. The disclosed ruling therefore treated stay-period appropriations and qualifying operating expenditure differently, rather than requiring the reversal of every payment made during the period.

On October 29, 2024, the NCLAT directed lenders to maintain amounts appropriated during the stay period in a separate interest-bearing account while their appeals were pending. On July 31, 2025, it dismissed the listed appeals and directed financial creditors to remit the amounts to Siti forthwith, together with accrued interest under the October 29 direction.

Certain financial creditors then appealed the July 31, 2025 judgment to the Supreme Court. The Supreme Court stay now prevents the remittance required by the NCLAT and separately restricts payments to operational creditors for stay-period liabilities. Siti has not stated when the Supreme Court will decide those appeals.

How did Siti's CIRP stay period arise?

Siti's CIRP stay period arose from the NCLAT's interim order of March 7, 2023, which stayed the February 22, 2023 NCLT admission order. The NCLT had commenced CIRP under Section 7 of the Insolvency and Bankruptcy Code and appointed Rohit Mehra as interim resolution professional, or IRP. Siti's public announcement inviting creditor claims was issued on February 25, 2023, with March 8, 2023 specified as the claim-submission date.

The NCLAT dismissed the appeal and all interim applications on August 10, 2023. Siti said the IRP downloaded a copy of that final order from the NCLAT website after business hours on August 14, 2023. The dismissal upheld the admission order, vacated the interim stay and reinstated CIRP with Rohit Mehra as IRP.

Following that outcome, the filing says the powers of Siti's board stood suspended and vested in the IRP under Section 17 of the Insolvency and Bankruptcy Code. The NCLT's October 1, 2024 ruling nevertheless fixed the insolvency commencement date at February 22, 2023 and said CIRP activities should be reckoned from that date. That finding underpins the dispute over actions taken while the admission order had been stayed.

What financial creditor claims has Siti disclosed?

Siti disclosed total financial-creditor claim figures of Rs 1,206.03 crore and Rs 1,500 crore in its November 2, 2026 filing. The filing says it is based on claims received as of August 10, 2023 and February 22, 2023. It does not state that either total represents amounts appropriated during the CIRP stay period.

Financial creditor claims disclosed by Siti	Amount (Rs crore)
Total claim figure shown in filing	1,206.03
Other total claim figure shown in filing	1,500

The two totals differ by Rs 293.97 crore, but the extracted filing does not provide a reason for the difference. It identifies Asset Reconstruction Company India Limited, or ARCIL, with displayed claim figures of Rs 364.77 crore and Rs 340 crore, while Axis Bank Limited has figures of Rs 240.85 crore and Rs 298 crore. Aditya Birla Finance Limited is shown at Rs 177.94 crore and Rs 182 crore.

Siti also lists IndusInd Bank at Rs 45.32 crore and Rs 163 crore, Ratnakar Bank Limited at Rs 54.33 crore and Rs 69 crore, and Indian Cable Net Company Limited at Rs 5.16 crore and Rs 5 crore. Vani Agencies Private Limited is shown at Rs 148 crore in both displayed figures. The disclosure does not establish a creditor-by-creditor explanation for movements between the claim columns.

Who is administering Siti's insolvency process now?

Siti says Trupal J. Patel is its resolution professional after the NCLT approved his appointment on September 28, 2026. Siti said it received a copy of that order on October 12, 2026. The committee of creditors had approved Patel after Rohit Mehra's registration cancellation became effective on September 6, 2026.

The filing also records that Vani Agencies' financial-creditor claim had originated with Zee Entertainment Enterprises Limited and was assigned on July 2, 2024. The NCLT allowed Vani Agencies' application on August 27, 2026, including relief concerning its inclusion in the committee of creditors and voting share proportionate to its admitted claim. Siti lists Vani Agencies at Rs 148 crore in each displayed claim figure.

Conclusion

Siti remains subject to an active insolvency dispute over collections made during the CIRP stay period. The NCLAT had ordered financial creditors on July 31, 2025 to return those amounts with accrued interest, but the Supreme Court stay currently prevents that remittance and stops payments to operational creditors for liabilities from the same period.

The next development is the outcome of the financial creditors' Supreme Court appeals, as Siti said any resulting changes or additions would be reflected in subsequent filings. The CIRP is now administered by Trupal J. Patel following the NCLT's September 28, 2026 approval of his appointment.

Frequently Asked Questions

Siti says certain financial creditors appealed the NCLAT judgment of July 31, 2025 to the Supreme Court. The Supreme Court has stayed their obligation to return amounts received during the CIRP stay period. Siti has not disclosed the value of the amounts covered by the stay.

Siti says the Supreme Court directed that no payments be made to operational creditors for liabilities relating to the CIRP stay period. The November 2, 2026 filing limits that statement to stay-period liabilities. It does not describe the treatment of operational liabilities outside that period.

The NCLAT directed financial creditors on July 31, 2025 to remit stay-period amounts to Siti forthwith, with accrued interest. That followed its dismissal of appeals against the NCLT's October 1, 2024 order. The Supreme Court stay currently prevents the remittance.

The NCLT initiated Siti's CIRP on February 22, 2023 under Section 7 of the Insolvency and Bankruptcy Code. The NCLAT stayed the admission order on March 7, 2023 and dismissed the appeal on August 10, 2023. The NCLT later held that the insolvency commencement date remained February 22, 2023.

Siti says Trupal J. Patel is its resolution professional. The NCLT approved his appointment on September 28, 2026, and Siti said it received the order on October 12, 2026. The appointment followed the effective cancellation of Rohit Mehra's registration on September 6, 2026.