The National Company Law Tribunal (NCLT) Bengaluru Bench has admitted an insolvency application and held that proceedings initiated by a secured creditor under the Securitisation and Reconstruction of Financial Assets and Enforcement ofSecurity Interest Act, 2002 (SARFAESI) does not operate as a bar to the initiation of corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC).
The operational creditor Devkiran Paper Mills Private Limited, engaged in the business of trading wastepaper had supplied materials to the corporate debtor during December 2024 and raised 14 invoices amounting to ₹1.71 crore. The invoices were payable within 30 days. However, except for a part payment of…