The NCLT has admitted an insolvency plea against a kraft paper manufacturer, adjudging that the debt and default were proven. Interim Resolution Professional Rishabh Sethi has been appointed to oversee the company's affairs.
Insolvency Plea Admitted Against Kraft Paper Manufacturer
The National Company Law Tribunal (NCLT) has admitted an insolvency plea under Section 9 of the Insolvency and Bankruptcy Code (IBC) against a kraft paper manufacturer. The Tribunal found evidence of proven debt and default, leading to the initiation of Corporate Insolvency Resolution Process (CIRP).
In its order, the NCLT appointed Rishabh Sethi as the Interim Resolution Professional (IRP), who will be responsible for managing the company's affairs, gathering creditor claims, and constituting a Committee of Creditors (CoC) within a stipulated timeline of 30 days.
This ruling reinforces the commitment to enforce creditor rights under the IBC, allowing the prompt initiation of CIRP to facilitate an orderly resolution of the company’s financial distress. It highlights the importance of timely intervention in cases of default.
Legal practitioners should note the implications of this ruling in the context of claims handling and the necessity of timely submissions within the prescribed deadlines in insolvency proceedings.
Citations
- NCLT Order (2026) 1 NCLT 1
