The NCLT has initiated a CIRP against a paper mill due to the absence of a genuine dispute regarding an operational debt of ₹1.25 crore. An Interim Resolution Professional has been appointed.
NCLT Initiates CIRP Against Paper Mill for Operational Debt
The National Company Law Tribunal (NCLT) has initiated a Corporate Insolvency Resolution Process (CIRP) against a paper mill with an operational debt totaling ₹1.25 crores. The Tribunal determined that there was no genuine dispute surrounding the debt, thereby allowing the insolvency proceedings to move forward.
By appointing Krishnasamy Vasudevan as the Interim Resolution Professional and imposing a moratorium under Section 14 of the IBC, the NCLT has taken a decisive step to protect creditor interests while the resolution process commences. This case highlights the Tribunal's role in addressing disputes over operational debts.
Legal practitioners should take note of this case as it underscores the Tribunal's commitment to acting on substantiated claims of operational debts, thereby influencing how creditors and corporate debtors engage during distress situations. It serves as a reminder of the need for clarity and prompt action in debt recovery matters.
Citations
- Paper Mill (2026) NCLT Order
