Zicom appeal makes Rs 16 crore creditor action conditional

Zicom Electronic Security Systems Limited said the National Company Law Appellate Tribunal (NCLAT) ruled on 26 October 2026 that further proceedings on an order to recompute distribution of Rs 16 crore among financial creditors are subject to the final outcome of IDBI Bank Ltd.’s appeal, listed for 18 November 2026.

What did NCLAT decide in Zicom’s appeal?

NCLAT did not give a final ruling on the creditor-distribution dispute in its 26 October 2026 order. Instead, it provided that further proceedings taken pursuant to the impugned order would remain subject to the final result of Company Appeal (AT) (Ins.) No. 2006 of 2026, filed by IDBI Bank.

Zicom disclosed the direction to the stock exchanges on 4 November 2026. The tribunal heard counsel for IDBI Bank and Central Bank of India, respondent No. 1, before issuing procedural directions and setting the next hearing under the same caption for 18 November 2026.

The qualification applies to proceedings under the underlying adjudicating authority order, rather than deciding whether that order was correct. The 26 October 2026 NCLAT record does not state that the Rs 16 crore allocation has been cancelled, redistributed, paid out or increased.

NCLAT also disposed of I.A. No. 7592 of 2026 on 26 October 2026. It said IDBI Bank’s counsel would file a typed copy if any document already filed in an illegible form became necessary during the hearing.

What payment order is IDBI Bank challenging?

The challenged order held that dissenting financial creditors were entitled to a minimum payment equal to the liquidation value of their security interest. It consequently directed the Resolution Professional to recompute the inter se distribution of the fixed Rs 16 crore outlay allocated to financial creditors.

The Rs 16 crore amount is described in the NCLAT order as a fixed outlay for financial creditors. The source does not identify the individual payout due to IDBI Bank, Central Bank of India or another creditor, and it does not state the number of dissenting financial creditors affected by the recomputation direction.

IDBI Bank’s counsel submitted on 26 October 2026 that the adjudicating authority’s order was against established precedents. The bank relied on the NCLAT decision in Beacon Trusteeship Ltd. v. Jayesh Sanghrajka, CA (AT) (INS) No. 1494-1495 of 2022, in support of that submission.

NCLAT recorded that argument but did not determine its merits in the 26 October 2026 order. The difference between the challenged order and the appellate order is therefore clear: the first required a recalculation of the Rs 16 crore distribution, while the second made future action under that direction conditional on the appeal’s final outcome.

Why must all CoC members be added to the appeal?

NCLAT directed IDBI Bank to implead every member of the committee of creditors, or CoC, as a respondent within three working days from 26 October 2026. The tribunal noted that the CoC was already arrayed as respondent No. 4, but the individual members, including banks that were part of the CoC, had not been separately added.

The tribunal said those individual CoC members were proper and necessary parties to the dispute. IDBI Bank was required to file an amended memorandum of appeal within the three-working-day period, bringing each member into the case rather than relying only on the CoC’s collective listing.

IDBI Bank was also directed to serve the newly impleaded respondents and existing respondents No. 2 to 4 by all possible means, including hand delivery, known as dasti. NCLAT required the bank to take the necessary steps and provide the requisites for service within the same three-working-day period from 26 October 2026.

Central Bank of India separately told NCLAT on 26 October 2026 that it had not received the memorandum of appeal and its enclosures. The tribunal directed IDBI Bank’s counsel to provide those documents to Central Bank of India’s counsel during the course of that day.

What deadlines apply before the 18 November hearing?

Central Bank of India was given one week from 26 October 2026 to file its reply to IDBI Bank’s appeal, with an advance copy to IDBI Bank’s counsel. IDBI Bank could file a rejoinder, if it chose, within three working days after the reply period.

Those deadlines followed the order requiring all CoC members to be added and served within three working days. Zicom’s 4 November 2026 announcement does not disclose whether IDBI Bank filed the amended appeal, whether Central Bank of India filed its reply, or whether a rejoinder was submitted.

The next listed date is 18 November 2026. The 26 October 2026 order was issued by Justice Mohammad Faiz Alam Khan, Member (Judicial), and Mr. Naresh Salecha, Member (Technical), in Comp. App. (AT) (Ins) No. 2006 of 2026.

What does the conditional direction mean for the Rs 16 crore outlay?

The conditional direction means the recomputation process for the Rs 16 crore outlay may continue only with its consequences subject to the appeal’s final result. NCLAT did not state in its 26 October 2026 order that it had accepted IDBI Bank’s position on the minimum payment for dissenting financial creditors.

The underlying payment issue concerns whether dissenting financial creditors should receive at least the liquidation value of their respective security interests. That treatment could affect the distribution among financial creditors within the fixed Rs 16 crore outlay, but the source provides no revised distribution schedule or creditor-specific amount.

Zicom’s 4 November 2026 filing consequently establishes a procedural constraint, not a final financial outcome. It does not quantify any change to the Rs 16 crore allocation, disclose a revised resolution payment, or state that an individual creditor’s entitlement has been finally determined.

The appeal also remains incomplete in procedural terms in the published record because NCLAT required every CoC member to be brought in as a respondent. The 18 November 2026 listing follows the tribunal’s directions on amended pleadings, service, a reply and a possible rejoinder.

Conclusion

Zicom’s disclosure confirms that the Rs 16 crore financial-creditor distribution remains under appellate scrutiny. The challenged order required a recomputation based on the liquidation value of dissenting creditors’ security interests, while NCLAT’s 26 October 2026 direction made further proceedings under that order subject to IDBI Bank’s appeal.

The next item to watch is the 18 November 2026 NCLAT listing. Before that date, the order required IDBI Bank to add and serve every CoC member within three working days, allowed Central Bank of India one week for its reply, and allowed a possible rejoinder within three working days thereafter.