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

Order Date: 11 June 2026

Case Overview

The Operational Creditor, Shri Kantbhai Pravinbhai Patel (Sole Proprietor of M/s Dhanvi International), filed a petition under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016 against the Corporate Debtor, Adison Granito Private Limited. The petition sought the initiation of a Corporate Insolvency Resolution Process (CIRP) due to a default in paying an operational debt of ₹1,57,23,223.52. This amount comprised a principal of ₹1,34,14,465.39 for goods supplied and accrued interest of ₹23,08,758.13 up to 25 February 2025.

The debt arose from the supply of materials, including white clay, imported coal, and ball clay, which are critical for tile manufacturing. The supplies were made from 15 October 2019 to 13 February 2022, documented by GST-compliant invoices. A credit period of two months was the industry norm. The date of default was stated as 15 April 2022. A demand notice was issued on 03 March 2025, which was served on the Corporate Debtor on 06 March 2025. No reply or payment was received within the statutory 10-day period, and no pre-existing dispute was communicated by the Corporate Debtor.

The Corporate Debtor, with a registered office in Ahmedabad and a paid-up share capital of ₹42,70,09,300, was proceeded against ex-parte after it failed to appear despite substituted service through publication.

The Tribunal examined the petition and supporting documents, including the CA-certified ledger, invoices, demand notice, and an affidavit confirming no notice of dispute was received. It found that the debt exceeded the threshold of ₹1 crore prescribed under Section 4 of the IBC and that the petition was filed within the limitation period. The conditions for admission under Section 9(5)(i) of the IBC were satisfied.

Final Outcome

The NCLT admitted the petition and initiated the Corporate Insolvency Resolution Process against Adison Granito Private Limited. A moratorium under Section 14 of the IBC was declared, prohibiting suits, asset transfers, and recovery actions against the corporate debtor. Truue IPE LLP (Registration No. IBBI/IPE-0151/IPA-1/2023-24/50052) was appointed as the Interim Resolution Professional (IRP). The IRP was directed to make a public announcement, take charge of the corporate debtor's assets, and manage it as a going concern. The Operational Creditor was directed to pay an advance of ₹3,00,000 to the IRP for initial CIRP costs. The Registrar of Companies was directed to update the corporate debtor's status on the MCA portal.

Topics: Insolvency, Operational Debt, NCLT