NCLT Rejects Daaraa Advance Manufacturing’s Plea To Recover Gold Machinery From Damara Gold CIRP Process

Mumbai: A plea by Daaraa Advance Manufacturing Solutions Pvt Ltd to recover gold machinery from Damara Gold Pvt Ltd, currently in corporate insolvency resolution proceedings (CIRP), was dismissed by the National Company Law Tribunal (NCLT). The applicant claimed the machinery was leased under an Equipment Lease Agreement dated April 1, 2025, and sought permission to recover around 600 grams of gold dust/residue alleged to be embedded in the machinery.

However, the NCLT held that the machinery belonged to Damara Gold and had to remain under the custody of the Resolution Professional (RP) during CIRP. The tribunal also rejected the applicant's claim of owning the 600 grams of gold residue as it was raised only in this application and not in earlier correspondence. The RP had opposed the application due to common directorships and close family connections between the applicant and Damara Gold’s suspended management.