Aryatech Platforms Pvt. Ltd. Wins Insolvency Case Against Tirumalla Agro Industries Pvt. Ltd.

NCLT Mumbai Bench Orders Initiation of Corporate Insolvency Resolution Process for Tirumalla Agro Industries 

In a significant ruling, the National Company Law Tribunal (NCLT), Mumbai Bench, has admitted the Corporate Insolvency Resolution Process (CIRP) against Tirumalla Agro Industries Private Limited following an application filed by Aryatech Platforms Private Limited, an operational creditor. The judgment, delivered on October 9, 2025, by the tribunal members, Shri Nilesh Sharma and Shri Sameer Kakar, marks a crucial development in the insolvency proceedings, highlighting the stringent application of the Insolvency and Bankruptcy Code, 2016 (IBC).

Aryatech Platforms Private Limited had approached the tribunal under Section 9 of the IBC, seeking initiation of CIRP against Tirumalla Agro Industries due to outstanding debts amounting to Rs.1,11,69,393, inclusive of penal charges. The tribunal meticulously examined the evidences presented, including the Short-Term Procurement Facility Agreement dated September 12, 2023, invoices, penal charges, and the demand notice served under Section 8 of the IBC.

The operational creditor successfully established the existence of an operational debt exceeding the threshold of Rs.1 Crore, with the corporate debtor failing to clear the dues despite repeated reminders and legal notices. Notably, the corporate debtor had acknowledged its liability and sought time to clear the outstanding amount, as evidenced by the replies dated March 20, 2024, and March 22, 2024.

The tribunal noted the corporate debtor's failure to file a substantive reply to the application, raising only technical objections regarding the timing of delivery notes and absence of invoices, which were deemed insufficient to constitute a dispute under Section 5(6) of the IBC.

Consequently, the tribunal declared a moratorium under Section 14 of the IBC, prohibiting institution or continuation of suits, transferring or encumbering assets, foreclosure actions, and recovery of property during the CIRP. The tribunal also appointed Mr. Srigini Rajat Naidu as the Interim Resolution Professional (IRP) to oversee the insolvency process.

This ruling underscores the importance of adhering to statutory requirements and timely compliance in insolvency proceedings. The tribunal's decision to admit the application and initiate the CIRP reflects its commitment to ensuring swift resolution of insolvency cases, thereby protecting the rights of creditors and maintaining the sanctity of contractual obligations.

The commencement of CIRP is effective from the date of the order, with the IRP tasked with protecting and preserving the value of the corporate debtor's property and managing its operations as a going concern. The IRP will also make a public announcement for submission of claims, ensuring transparency and accountability in the insolvency process.

This judgment sets a precedent in insolvency law, reinforcing the tribunal's role in facilitating effective resolution mechanisms and safeguarding the interests of stakeholders involved in insolvency proceedings.

Bottom Line:

Insolvency and Bankruptcy Code, 2016 - Admission of Corporate Insolvency Resolution Process - Operational Creditor successfully establishes the existence of operational debt exceeding the threshold, default in payment, issuance of demand notice, and no record of dispute. Corporate Debtor admitted its liability and failed to clear outstanding dues.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 Sections 3(12), 5(21), 8, 9, 14

Aryatech Platforms Private Limited v. Tirumalla Agro Industries Private Limited, (NCLT)(Mumbai Bench- VI) : Law Finder Doc Id # 2802018