Authority: National Company Law Tribunal, Ahmedabad Bench (Court-II)
Order Date: 14/07/2026
Case Overview
This application was filed on 10 October 2019 by operational creditor M/s Do Well Moulds under Section 9 of the Insolvency and Bankruptcy Code, 2016, seeking initiation of Corporate Insolvency Resolution Process (CIRP) against corporate debtor M/s Manpasand Beverages Limited (CIN: L15499G2010PLC063283). The applicant claimed an operational debt of ₹34,40,91,542 was due from the respondent for goods supplied based on purchase orders dating from 2014-2015, with invoices raised between 6 November 2017 and 25 September 2018.
The respondent contested the application on multiple grounds: (1) it was barred by limitation as the default allegedly began in February 2015 and the application was filed in October 2019; (2) the invoices were allegedly raised without corresponding purchase orders or actual delivery of goods; (3) the applicant had cancelled these invoices and obtained GST reversals; (4) there were pre-existing disputes between the parties; and (5) key officials were under judicial custody during the demand notice period due to GST investigations.
The tribunal noted that both parties were under investigation by GST authorities for circular trading and availing bogus input tax credit. An order from the Joint Commissioner, Central GST and Central Excise, Vadodara dated 28 January 2025 indicated that transactions between the parties involving over ₹160 crores appeared to be paper transactions without actual goods movement.
Final Outcome
The NCLT rejected the insolvency petition (CP(IB) No. 764 of 2019) on grounds of being barred by limitation and due to findings of potential fraudulent transactions. The tribunal directed the registry to send a copy of the order to the Registrar of Companies (ROC) and GST authorities for examination and investigation into the matter.
Topics: Insolvency Proceedings, GST Fraud Investigation