The Chandigarh Bench of the National Company Law Tribunal (NCLT) on 11 June admitted a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Kokila Mining Pvt. Ltd. and initiated the Corporate Insolvency Resolution Process against Tycoons Industries Pvt. Ltd..
Judicial Member Khetrabasi Biswal and Technical Member Shishir Agarwal appointed Neehal Mahamulal Pathan as Interim Resolution Professional and declared a moratorium. The Bench observed:
“Under the summary jurisdiction of the Code, the Corporate Debtor cannot unilaterally set-off the liabilities of distinct corporate entities against the Operational Creditor’s legally crystallised invoices to artificially drag the debt below the prescribed…