The NCLT has initiated Corporate Insolvency Resolution Process against a paper mill due to ₹1.25 crore operational debt, underscoring the absence of a genuine dispute.
Absence of Genuine Dispute Leads to CIRP Against Paper Mill
The NCLT has initiated Corporate Insolvency Resolution Process (CIRP) against a paper mill, citing ₹1.25 crore in operational debt as the primary cause. The Tribunal noted that the absence of a genuine dispute over the claims warranted the commencement of proceedings under the IBC.
Furthermore, the Tribunal appointed Krishnasamy Vasudevan as the Interim Resolution Professional (IRP) for oversight during the process, while a moratorium under Section 14 of the IBC has been imposed to protect the interests of all stakeholders.
This ruling highlights the NCLT's commitment to facilitate timely resolutions amidst operational debts, which practitioners should view as a crucial benchmark for handling similar insolvency cases, stressing the importance of transparency and legitimacy in disputes.
Citations
- NCLT Order (2026) 1 NCLT 5
