In a recent ruling, the National Company Law Tribunal (NCLT), Bengaluru Bench, has admitted an insolvency petition filed by the petitioner under Section 9 of the Insolvency and Bankruptcy Code, 2016, after finding that the corporate debtor’s plea of financial distress could not absolve it from repayment obligations.
The operational creditor sought initiation of the Corporate Insolvency ResolutionProcess (CIRP) for default in payment of ₹2.49 crore arising from a revenue‑sharing and rent arrangement for restaurant operations at Highway Star’s premises. Despite repeated reminders and a statutory demand notice issued in July 2025, Maiyas Restaurants failed to clear the dues, admitting its liability but citing…