NCLT admits Section 9 IBC petition; CIRP started, Board powers suspended
NCLT, New Delhi Bench admitted a Section 9 IBC petition against the company on 31st October, 2026 (CP IB 697/ND/2025).
By ScoutQuest · · 2 min read
- Total default amount
- ~Rs 6.15 crore
- Principal amount
- ~Rs. 5.4 crore
- Interest amount
- Rs. 75,02,745
What the order says
The National Company Law Tribunal, New Delhi Bench, admitted a petition shared under Section 9 of the Insolvency and Bankruptcy Code, 2016 by Bikit Private Limited, described in the update as an operational creditor, against the company. The order is dated 31st October, 2026 and the case number is CP IB 697/ND/2025. The company informed the exchange on 04th November, 2026.
The amounts in the order
- Principal unpaid advance claimed: ~Rs. 5.4 crore
- Contractual simple interest at 12% per annum: Rs. 75,02,745
- Total default stated: ~Rs. 6.15 crore
- Purchase order value: Rs. 15 crore
The advance of ~Rs. 5.4 crore was paid in three tranches: Rs. 50 lakh on 29.06.2024, Rs. 50 lakh on 30.06.2024 and ~Rs. 4.4 crore on 01.07.2024. Under the MoU, goods were to be delivered within 60 days of the advance, that is on or before 30.08.2024.
How the claim arose
- The applicant and the company signed a Memorandum of Understanding dated 25.06.2024 for supply of agricultural and allied trading goods.
- The applicant says it paid the advance and issued a written demand dated 09.09.2024 asking for supply or refund within fifteen days.
- A demand notice dated 22.11.2025 in Form 3 under Section 8 of the IBC was issued; the applicant says no payment was made.
- The Tribunal held that a claim for repayment of an advance paid in connection with a supply transaction can be an operational debt under Section 5(21) of the Code.
What changes for the company
- The powers of the Board of Directors stand suspended and are to be exercised by the Interim Resolution Professional, Mr. Raghunath Bhandari (Registration No. IBBI/IPA-002/IP-N01023/2020-21/13276).
- A moratorium comes into effect from 31st October, 2026 and remains in force until completion of the CIRP, approval of a resolution plan, or a liquidation order, as applicable.
- The update states that the commencement of the CIRP has an impact on the management and control of the company, in line with the IBC.
What the company argued, per the order
- That under clause 4.1(b) of the MoU the buyer did not pay the first tranche of approximately 20% of the total order value within sixty days of the advance, which it said prevented supply of goods.
- That there was a pre-existing dispute and that the petition was in substance a recovery proceeding.
- That it is a profit-making company and not insolvent.
- That the record of default was placed on record at a later stage.
- The Tribunal decided these objections in favour of admitting the petition.
What to track
The company has stated that further material developments will be disclosed to the stock exchange. For a retail investor, the key things to follow are the steps of the CIRP, the role and decisions of the Interim Resolution Professional, and any resolution plan or other outcome that follows.
More numbers
- Amount of default stated in the updateRs 6,14,52,745/-
- Principal unpaid advance claimedRs. 5,39,50,000
- Contractual simple interest claimedRs. 75,02,745
- Rate of contractual simple interest12% per annum
- Total value of the purchase orderRs. 15,00,00,000
- Third advance tranche paid on 01.07.2024Rs. 4,39,50,000
- Delivery period from receipt of advance60 days
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