Authority: National Company Law Tribunal, New Delhi Bench Court-IV

Order Date: 10 July 2026

Case Overview

The National Company Law Tribunal (NCLT) heard a petition filed by M/s Nicia Food And Drinks Private Limited (Corporate Applicant) under Section 10 of the Insolvency and Bankruptcy Code, 2016. The corporate applicant sought initiation of Corporate Insolvency Resolution Process (CIRP) against itself as it had defaulted on debt payments. The company, incorporated with CIN U74999DL2017PTC310738 and registered office at Ground Floor, Khasra Number 112 Near Balhara Hospital, Main Ignou Road, Neb Sarai, South Delhi, New Delhi, had been engaged in manufacturing, processing, packaging, importing, exporting, trading, and distributing food and beverage products including processed foods, health foods, protein foods, agro-based foods, fast foods, packaged foods, poultry, seafood, bakery items, confectionery, fruit and vegetable products, dairy products, and beverages such as soft drinks, mineral water, syrups, and aerated drinks.

Over the past one and a half years, the company faced severe financial difficulties due to its failure to honor commitments to financial and operational creditors. Management efforts to keep the company operational proved unsuccessful as outstanding dues to sundry creditors rose to levels nearly equivalent to combined financial and operational debt. This precipitated sudden financial collapse, resulting in mounting losses and severe financial stress that led to defaulting on payments to both operational and financial creditors.

The company had created a charge in favor of Deutsche Bank AG in 2024 to facilitate business operations but subsequently defaulted on repayments. Despite bona fide efforts to regularize financial affairs, the company's financial health deteriorated beyond revival possibility.

The corporate applicant submitted extensive documentation including: list of financial creditors; list of operational/sundry creditors; details of charges created with Certificate of Registration of Charge; list of default notices; list of loan accounts; audited balance sheets for 2023-2024 and 2024-2025; provisional balance sheet (till 28th February 2026); and list of sundry debtors with amounts.

The company authorized the filing through a board resolution dated 29 December 2025 and a special resolution passed by shareholders dated 22 January 2026. The tribunal found that the debt was due and payable, with the corporate applicant unable to pay Rs 4,31,68,766/- as financial debt and Rs 1,99,876.57/- as operational debt. Audited financial statements for 2023-2024, 2024-2025 and provisional balance sheet showed substantial losses.

Final Outcome

The NCLT admitted the petition (C.P. (IB)/139/ND/2026) and initiated CIRP against M/s Nicia Food And Drinks Pvt. Ltd. under Section 10 of IBC 2016. The tribunal appointed Mr. Shailendra Singh (Registration No.: IBBI/IPA-002/IP-N00471/2017-2018/11372) as Interim Resolution Professional with office at 112, 11th Floor, Ansal Bhawan, 16 K.G.Marg, Connaught Place, New Delhi-110001. The IRP must file a valid AFA and disclosure about non-initiation of disciplinary proceedings within five days. The corporate applicant was directed to deposit Rs 2 lakh with the IRP within three days to meet resolution process expenses.

The tribunal declared moratorium under Section 14 of IBC, prohibiting: institution or continuation of suits against corporate debtor; transferring, encumbering or disposing of assets by corporate debtor; any action to foreclose, recover or enforce security interest; recovery of property by owner/lessor where property is occupied by corporate debtor. The moratorium does not apply to transactions notified by Central Government, supply of essential goods/services, or surety in contract of guarantee to corporate debtor.

The IRP must make public announcement under Section 13(2) immediately (within 3 days as prescribed). All personnel connected with corporate debtor must extend assistance to IRP under Section 19. The court officer must communicate the order to corporate person and IRP via email within two days. The corporate applicant must serve copy to IRP and Registrar of Companies, NCT of Delhi and Haryana, who must send compliance report to court registry within seven days of receipt.

Topics: Insolvency, Corporate Debt