NCLT Cuttack Bench Admits Insolvency Proceedings Against Bhilai Jaypee Cement Ltd.

Siddhgiri Holdings Initiates CIRP Over Rs. 45 Crore Debt; Tribunal Declares Moratorium

In a significant ruling, the National Company Law Tribunal (NCLT), Cuttack Bench, has admitted the application filed by Siddhgiri Holdings Private Limited to initiate the Corporate Insolvency Resolution Process (CIRP) against Bhilai Jaypee Cement Limited. The tribunal, presided over by Member Judicial Deep Chandra Joshi and Member Technical Banwari Lal Meena, delivered the order on October 15, 2025, citing a default on an operational debt amounting to Rs. 45,40,22,840.95.

The application, filed on August 17, 2024, by Siddhgiri Holdings, contended that Bhilai Jaypee Cement had defaulted on payments for coal supplied under three purchase orders. Despite multiple invoices and acknowledgment of liability by the corporate debtor, the payment remained outstanding. The tribunal observed that the operational debt exceeded the statutory threshold of Rs. 1 Crore, thus satisfying the criteria for CIRP initiation under Section 9 of the Insolvency and Bankruptcy Code, 2016.

Bhilai Jaypee Cement, represented by senior counsel Mr. Ashish Srivastava, argued that the application was defective due to the absence of certain certificates, such as the Information Utility certificate and bank certification of unpaid debt. However, the tribunal held these requirements to be directory rather than mandatory, emphasizing that the core elements of operational debt and default were established beyond dispute.

The tribunal also addressed the respondent's contention regarding the inadmissibility of digital evidence without certification under Section 63 of the Bharatiya Sakshya Adhiniyam, 2023. It ruled that the existence of debt was sufficiently supported by documentary evidence and acknowledged by the corporate debtor, rendering the absence of such certificates inconsequential.

Following the admission of the application, the tribunal declared a moratorium under Section 14 of the Insolvency and Bankruptcy Code, 2016, prohibiting the institution or continuation of suits, transfer or disposal of assets, and other actions against Bhilai Jaypee Cement. Mr. Ashutosh Khemani was appointed as the Interim Resolution Professional (IRP) to oversee the CIRP process.

The tribunal's decision reinforces the principle that operational creditors can initiate insolvency proceedings based on substantive evidence of debt and default, without being hindered by procedural technicalities. The proceedings will now focus on resolving the insolvency of Bhilai Jaypee Cement, ensuring that the interests of all stakeholders are addressed.

Bottom Line:

Insolvency and Bankruptcy Code, 2016 - Operational Creditor can initiate Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Code for an operational debt exceeding the threshold amount of Rs. 1 Crore. The absence of certain certificates, such as Information Utility certificate or bank statement certification, does not necessarily render the application incomplete, as these requirements are considered directory rather than mandatory.

Statutory provision(s): Insolvency and Bankruptcy Code, 2016 (Sections 9, 14, 19, 20), Bharatiya Sakshya Adhiniyam, 2023 (Section 63)

Siddhgiri Holdings Private Limited v. Bhilai Jaypee Cement Limited, (NCLT)(Cuttack Bench) : Law Finder Doc Id # 2797721