The Karnataka High Court on Monday stayed the initiation of corporate insolvency resolution proceedings (CIRP) against Cauvery Neeravari Nigam Limited (CNNL), a Karnataka government-owned irrigation company [Cauvery Neeravari Nigam Vs Union of India].
The stay order was passed by Justice Suraj Govindaraj in a writ petition challenging a December 10 order of the National Company Law Tribunal (NCLT) which had admitted CNNL into insolvency on a petition filed by SPML Infra Ltd under Section 9 of the IBC.
“I am of the considered opinion that the NCLT could not have admitted the petitioner to corporate insolvency proceedings. In that view of the matter, the operation of the order dated December 10, 2025 passed by the NCLT in C.P.(IB) No. 39…