Supreme Court Backs NCLT’s Order for Interim Fund Distribution of BKEL

06 Nov 2024 CW Team

In a recent ruling, the Supreme Court has upheld the National Company Law Tribunal’s (NCLT) decision to allow interim fund distribution from the escrow account of BKEL (Brahmaputra Infrastructure Ltd.). This decision supports the NCLT's initial order, facilitating the release of funds amidst BKEL’s ongoing financial restructuring process.

The escrow funds, initially frozen due to BKEL's debt obligations, can now be partially distributed under supervised conditions. This interim measure is intended to address the company’s immediate financial commitments and ensure the continuation of critical operations, which is essential for BKEL as it undergoes the corporate insolvency process.

This decision is significant for creditors and stakeholders alike, as it sets a precedent on the use of escrow funds during insolvency proceedings, balancing the need for liquidity with legal protections for creditors. By approving the interim distribution, the court aims to maintain operational stability within BKEL while respecting the rights of its creditors.

Experts note that this ruling could influence future cases involving fund distribution in insolvency matters, providing a pathway for struggling companies to access necessary funds while remaining compliant with regulatory guidelines. The Supreme Court's backing of the NCLT order strengthens the tribunal’s authority in managing corporate restructuring and maintaining the interests of various stakeholders.

Infrastructure Transport

19 Dec 2025

Tripura Rail Survey Approved For Jirania–Bodhjung Link

The Ministry of Railways has approved a Final Location Survey (FLS) for a proposed new railway line between Jirania and Bodhjung Nagar in Tripura. The planned section will span 14 km and is estimated to cost around Rs 4.2 million, with the entire alignment located within West Tripura district. The approval marks a key step towards strengthening railway infrastructure and supporting industrial growth in the state. Bodhjung Nagar is Tripura’s principal industrial and commercial hub, developed mainly for resource-based industries such as rubber, bamboo and food processing. The proposed Jirania..

MCF Raebareli Rolls Out Its 15,000th Passenger Coach

The Modern Coach Factory (MCF) in Raebareli, Uttar Pradesh, has reached a major production milestone with the manufacture of its 15,000th passenger coach on December 15, the Ministry of Railways said. During the current financial year 2025–26, the unit has produced a total of 1,310 coaches so far. Established in 2007 at Lalganj in Raebareli, MCF is among India’s most advanced passenger coach manufacturing facilities. Built at a cost of around Rs 31.92 billion, the factory has an installed annual capacity of 1,000 coaches and is located about 3 km from Lalganj on the Kanpur–Raebareli Roa..

RVNL Wins Gandak River Rail Bridge Contract

Rail Vikas Nigam Limited (RVNL) has received a Letter of Award from North Eastern Railway for a major railway infrastructure project valued at Rs 1.65 billion. The contract relates to the construction of the substructure for a key railway bridge over the Gandak River. The bridge will be constructed between Paniyahwa and Valmikinagar stations as part of the doubling of the Gorakhpur Cantt–Valmikinagar railway section. Designed to enhance capacity and operational efficiency, the structure will comprise 14 spans of 61 metres each and will be supported by double D-type well foundations. The des..