Authority: National Company Law Appellate Tribunal, Chennai (Justice N. Seshasayee - Member (Judicial) and Jatindranath Swain - Member (Technical))
Order Date: 31 August 2026
Case Overview
This appeal has been filed by G. Babuji, the suspended director of Meenakshi Steels Pvt. Ltd. (corporate debtor), challenging the order of the Adjudicating Authority (NCLT) that admitted the corporate debtor into Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC).
The dispute involves non-payment of debt arising from the sale of steel scrap by the operational creditor, Stride Steels Pvt. Ltd., to the corporate debtor. The appellant's core defense is the subsistence of a pre-existing dispute regarding the liability claimed by the operational creditor. Specifically, the appellant contends that:
- The transactions between the parties occurred over several years, resulting in a running account between them
- According to this running account, the actual balance due is approximately ₹1.03 crore
- The operational creditor relies on only six invoices totaling approximately ₹69 lakh to establish liability
- The date of default indicated in part 4 of the petition predates the dates of the invoices relied upon by the operational creditor
The appellant has also indicated that, without prejudice to the contentions in this appeal, they have resolved a dispute with the operational creditor.
Final Outcome
The NCLAT has admitted the appeal for hearing and adjourned the matter to 16 September 2026 for final hearing. Pending the hearing, the Resolution Professional (RP) has been directed not to constitute the Committee of Creditors (CoC). Both parties have been required to file their respective pointed notes of submissions before the next hearing date.
Topics: Insolvency Appeal, Debt Dispute, NCLAT Proceedings