Valufocus Eco- Revive Packaging Vs Devkiran Paper Mills Private Limited (NCLT Bengaluru)
The National Company Law Tribunal (NCLT), Bengaluru Bench, admitted a petition filed under Section 9 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor for default in payment of operational debt amounting to ₹1,96,42,797.44. The Operational Creditor, a partnership firm engaged in the business of trading wastepaper, supplied wastepaper to the Corporate Debtor, a manufacturer of finished kraft paper, between 05.12.2024 and 31.12.2024 and raised 14 invoices aggregating ₹1,71,13,217. As per the agreed terms, payment was due within 30 days from the invoice dates. After a part payment of ₹4,14,416 made on 11.12.2024, an outstanding principal amount of ₹1,66,98,801 remained unpaid, along with claimed interest at 18% per annum. Demand notices issued under Section 8 of the Code on 15.07.2025 and 15.10.2025 were duly served, but the Corporate Debtor neither cleared the dues nor raised any dispute.
The Corporate Debtor opposed the petition, contending that the application was premature because settlement discussions were ongoing, that payment delays resulted from financial and operational stress, and that the invoices did not specify any due date. It also argued that proceedings initiated by a secured creditor under the SARFAESI Act were already pending and that the Insolvency and Bankruptcy Code should not be used as a recovery mechanism. Further, it questioned the quantum and validity of the claim and asserted that issues regarding supply of materials and invoice values required adjudication before a competent court.
