The NCLT has admitted an insolvency plea against a paper mill over an operational debt of ₹1.25 crore. The case was initiated under Section 9 of the Insolvency and Bankruptcy Code, marking a significant move in the operational sector.
NCLT Admits Insolvency Plea Against Paper Mill
The National Company Law Tribunal (NCLT) has initiated the Corporate Insolvency Resolution Process (CIRP) against a paper mill due to an operational debt of ₹1.25 crore. This action was taken under Section 9 of the Insolvency and Bankruptcy Code (IBC), highlighting the importance of addressing unpaid debts in the operational sector.
As part of the process, the tribunal has appointed Krishnasamy Vasudevan as the Interim Resolution Professional and imposed a moratorium as per Section 14 of the IBC. This moratorium prohibits any further proceedings against the company until the resolution process concludes.
This case underlines the NCLT's strict approach to operational debts, particularly in industries facing financial distress. Practitioners should note the implications for creditors and the responsibilities of resolution professionals in the CIRP process.
