Absence of genuine dispute leads to CIRP against paper mill over ₹1.25 crore operational debt: NCLT admits insolvency plea under Sec. 9 IBC [Read Order]

The National Company Law Tribunal (NCLT), Chennai Special Bench‑II, has admitted an insolvency petition filed by the petitioner under Section 9 of the Insolvency and Bankruptcy Code, 2016, initiating the Corporate Insolvency ResolutionProcess (CIRP) over an operational debt of ₹1.25 crore.

The petitioner, Arjun Saikumar, engaged in coal trading and supplied “non‑cooking steaming coal” to the Coimbatore‑based paper mill pursuant to purchase orders. Despite receiving the goods, the company allegedly failed to clear dues of ₹89.78 lakh, prompting the creditor to issue a statutory demand notice under Section 8. With no payment or valid dispute raised, the petition was filed in November 2023.

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