Authority: National Company Law Tribunal, Division Bench, Court-I, Ahmedabad

Order Date: 09.06.2026

Case Overview

The National Company Law Tribunal (NCLT) Ahmedabad heard a petition filed by M/s. Harbhole Agrotech (Operational Creditor) against Evoq Remedies Limited (Corporate Debtor) under Section 9 of the Insolvency and Bankruptcy Code, 2016. The operational debt of ₹1,95,00,000 arose from non-refund of advance amount paid for supply of FSG Castor Oil. The Operational Creditor is a proprietorship concern registered under Udyam Registration No. UDYAM-HR-14-001582 dated 06.08.2021 with GSTIN No. 06ADAPL6280C1ZW. The Corporate Debtor is a public company incorporated on 24.02.2010 with CIN No. L46209GJ2010PLC059692.

The dispute originated from Purchase Order No. 26 dated 25.04.2025 for purchase of FSG Castor Oil worth ₹2,14,34,175, which was accepted by the Corporate Debtor via email on 25.04.2025. The Operational Creditor paid advances of ₹1,20,00,000 on 31.07.2025 and ₹75,00,000 on 02.08.2025 (total ₹1,95,00,000), with acknowledgments received from the Corporate Debtor. Despite receiving payment, the Corporate Debtor neither supplied the goods nor refunded the advance, with default occurring on 01.09.2025.

The Operational Creditor issued a legal notice on 24.01.2026 followed by a Demand Notice under Section 8 of the Code in Form-3 on 12.03.2026. No notice of dispute or reply was received from the Corporate Debtor. The petition was filed on 20.04.2026 and despite proper service of notice, the Corporate Debtor did not appear or file any reply, leading to ex-parte proceedings.

The Tribunal found that the documents established existence of debt and default, with no pre-existing dispute shown on record. The petition was filed within limitation period and the amount exceeded the threshold under Section 4 of the Code.

Final Outcome

The NCLT admitted Evoq Remedies Limited into Corporate Insolvency Resolution Process under Section 9(5) of the IBC. A moratorium under Section 14 was declared prohibiting: institution/continuation of suits against the corporate debtor; transfer of assets; foreclosure actions; recovery of property from corporate debtor; with exceptions for notified transactions and surety agreements. The moratorium takes effect immediately and continues until CIRP completion or liquidation order.

Ms. Dipti Narayan Mundra (Registration No. IBBI/IPA-001/IP-P-02845/2023-2024/14366) was appointed as Interim Resolution Professional. She is required to make public announcement within 3 days, take charge of corporate debtor's assets within 7 days, submit a status report within 30 days, and protect the value of the corporate debtor's property.

The Operational Creditor was directed to pay ₹3,00,000 to the IRP within 7 days for initial CIRP costs, adjustable against IRP fees approved by CoC. The Registry was directed to communicate the order to all parties, ROC, and IBBI within 7 working days, and update the corporate debtor's status on MCA portal.

Topics: Corporate Insolvency, Operational Debt, Moratorium