VPVardhman Polytex514175Insolvency update notice

Operational creditor files Section 9 IBC application for Rs. 40.70 Crore claim

Vardhman Polytex has received intimation that an operational creditor has shared an application under Section 9 of the Insolvency and Bankruptcy Code, 2016.

By ScoutQuest · Thu 29 Oct 2026, 5:17 PM IST · 2 min read

Total Claim Amount

Rs. 40.70 Crore

Principal Component

Rs. 28.08 Crore as principal

Interest Component

Rs. 12.62 Crore as interest

What the company has disclosed

• It has received intimation of an application shared under Section 9 of the Insolvency and Bankruptcy Code, 2016 (IBC).
• The applicant is an operational creditor: M/s Bhagwati Cotton Company, through its proprietor Mr. Sushil Kumar.
• The application was shared on 28 October, 2026 before the National Company Law Tribunal (NCLT) at Chandigarh.
• The claim amount stated is Rs. 40.70 Crore, of which Rs. 28.08 Crore is shown as principal and Rs. 12.62 Crore as interest.

The claim amount in detail

• Total claim: Rs. 40.70 Crore
• Principal component: Rs. 28.08 Crore
• Interest component: Rs. 12.62 Crore

The interest portion is a meaningful part of the total claim stated, so the split between principal and interest matters when judging the size of the demand.

What Section 9 of the IBC refers to

• The IBC sets out a time-bound process for dealing with companies that are unable to pay debts.
• Section 9 deals with an application made by an operational creditor. Operational creditors are typically those who supply goods or services to a company, rather than lenders of money.
• Such an application is shared before the NCLT, which is the adjudicating authority under the Code.

How to read this development

• The disclosure records that an application has been shared by a creditor and states the amount claimed. It is information about a legal step taken by a creditor before the tribunal.
• For a shareholder, an insolvency application is a development worth tracking because it concerns the company's dealings with its creditors and the forum in which the claim will be examined.
• The company has disclosed the update to the exchanges as information for the record.

What to watch

• The claim is described as being made by an operational creditor for a stated amount of Rs. 40.70 Crore; the split between principal and interest is stated in the disclosure.
• The application is before the NCLT at Chandigarh, which is the forum named in the disclosure.

In short: the update tells investors that an operational creditor has moved the NCLT under Section 9 of the IBC with a claim of Rs. 40.70 Crore, comprising Rs. 28.08 Crore principal and Rs. 12.62 Crore interest, and that the company has received intimation of this.

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

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