New Delhi, Oct 22 (IANS) The National Company Law Tribunal (NCLT) has ordered the start of insolvency proceedings against Bhilai Jaypee Cement, a subsidiary of debt-laden Jaiprakash Associates Limited (JAL), for failing to pay dues of Rs 45 crore to a supplier.

The Cuttack bench of the NCLT passed the order after admitting a petition filed by Sidhgiri Holdings Private Limited, which had supplied coal to Bhilai Jaypee Cement.

The cement company reportedly did not pay the full amount for coal purchased between September 2021 and June 2022.

Sidhgiri Holdings had sent coal under three separate purchase orders of 2,000 metric tonnes each, making it a total of 6,000 metric tonnes.

According to the agreement, the company was supposed to make payments within 15 days of delivery. However, only partial payments were made.

Sidhgiri later issued a statutory demand notice on June 22, 2024, claiming Rs 45.40 crore, which included Rs 30.08 crore as principal and Rs 15.32 crore as interest at 24 per cent per annum.

After receiving no response from Bhilai Jaypee Cement, the supplier approached NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC), which allows operational creditors to initiate insolvency proceedings against a defaulting company.

Bhilai Jaypee Cement opposed the petition, arguing that it is a solvent company and the case was filed with the sole aim of recovering money, not for resolving insolvency.

The company also claimed that proper documentation such as invoices, e-way bills, and bank statements were not provided.

However, the NCLT bench, comprising Members Deep Chandra Joshi and Banwari Lal Meena, disagreed with the company’s defence.

The tribunal said there was no dispute raised over the coal supplies or the invoices issued by Sidhgiri Holdings.

It also said the cement company had not contested the existence or the amount of the debt.

“The existence of debt is clearly established by the invoices, and the company has not denied receiving them,” the tribunal said in its order.

The NCLT also rejected the company’s reference to Section 63 of the BSA, 2023, calling it irrelevant in this case.

The NCLT has now appointed an Interim Resolution Professional (IRP) to take charge of Bhilai Jaypee Cement.

The company’s board has been suspended, and a moratorium has been placed on all legal actions and sale of assets, as per IBC rules.

Bhilai Jaypee Cement’s parent company, Jaiprakash Associates Limited, is already under insolvency proceedings.

–IANS

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