In a recent ruling, the National Company Law Appellate Tribunal (NCLAT) has upheld the NCLT’s decision dismissing the insolvency plea against A.G. Pipes Pvt. Ltd., holding that the claimed operational debt did not meet the ₹1 crore threshold under the Insolvencyand Bankruptcy Code (IBC).
The appellant, Bhushan Power & Steel Limited, had approached the tribunal seeking initiation of insolvency proceedings under Section 9 of the IBC, alleging that A.G. Pipes Pvt. Ltd. had defaulted on payments totalling ₹1.49 crore for steel supplies made under various purchase orders. The company argued that despite repeated demand notices in 2019 and 2021, the respondent failed to clear outstanding dues.
The National…