Authority: National Company Law Tribunal, Division Bench, Court - 1, Ahmedabad
Order Date: 13/07/2026
Case Overview
The Company Petition was filed by Vraipack Industries (Operational Creditor) under Section 9 of the Insolvency and Bankruptcy Code, 2016 against Exxaro Tiles Limited (Corporate Debtor). The petition alleged a total default of ₹2,09,03,174.06, comprising ₹1,81,00,305.06 towards principal and ₹28,02,869 towards interest. This was the second petition filed by the applicant, as an earlier petition (CP (IB) No. 5 of 2026) had been withdrawn due to an incorrect demand notice under Section 8 of the Code.
The principal issue considered by the Bench was that the principal amount in default (₹1.81 crore) was below the minimum statutory threshold prescribed under the Code on the date of filing. The petition was maintained solely on the basis of a unilateral claim of interest amounting to ₹28.02 lakh. The Bench observed that the proceedings were initiated not for resolution of the corporate debtor but as a means of recovery, which is contrary to the object of the Code.
Final Outcome
The petition was dismissed with exemplary costs of ₹1,00,000 (Rupees One Lakh Only), to be deposited in the Prime Minister's National Relief Fund within seven days from the date of the order. The matter was listed for 27/07/2026 for reporting compliance with the cost payment direction. The Registry was directed to serve a copy of the order upon the Respondent/Corporate Debtor for information.
Topics: Insolvency Petition, NCLT Procedure, Legal Costs