NCLT admits insolvency plea against New Bombay Paper Mills over ₹3.02 crore default
Mumbai, April 2, 2025: The National Company Law Tribunal (NCLT), Mumbai Bench-IV, has admitted an insolvency petition filed by Maheshwari Fuelchem Private Limited under Section 9 of IBC against New Bombay Paper Mills Private Limited for a default of ₹3.02 crore. The tribunal ordered the initiation of the Corporate Insolvency Resolution Process (CIRP) and declared a moratorium under Section 14 of the Insolvency and Bankruptcy Code (IBC), 2016.
Key Details of the Case
- Operational Creditor: Maheshwari Fuelchem Pvt. Ltd. (supplier of coal).
- Corporate Debtor: New Bombay Paper Mills Pvt. Ltd. (engaged in paper manufacturing).
- Default Amount: ₹3,02,31,477 (principal) + 15% interest from July 10, 2023.
- NCLT Bench: Hon’ble Members Anil Raj Chellan (Technical) and K.R. Saji Kumar (Judicial).
Background of the Dispute
Maheshwari Fuelchem supplied coal to New Bombay Paper Mills on a 60-90 day credit basis between April 1, 2023, and July 8, 2023. The debtor’s own ledger entries confirmed an outstanding balance of ₹3.02 crore after partial payments and adjustments. Despite multiple reminders and a statutory Demand Notice (Form-3) issued on September 29, 2023, the paper mills failed to repay, citing financial distress and seeking an ex-gratia reduction.
Tribunal’s Observations
- Admission of Debt: The corporate debtor, through its counsel, admitted liability during hearings, negating the need for further dispute resolution.
- Limitation: The application (filed on February 16, 2024) was within the limitation period, with the default date corrected to July 10, 2023, via an additional affidavit.
- Moratorium: Immediate restrictions were imposed on asset transfers, legal proceedings, and recovery actions against the debtor.
CIRP Directions
- IRP Appointment: Mr. Shashank Dinesh Posture (IBBI Reg. No. IBBI/IPA-001/IP-P-02921/2024-2025/14480) was named Interim Resolution Professional.
- Initial Deposit: Maheshwari Fuelchem must deposit ₹5 lakh to cover CIRP costs, recoverable as interim finance.
- Compliance: The ROC Maharashtra and IBBI were notified for record updates.
Next Steps
The IRP will issue public announcements, invite claims, and oversee the resolution process. The moratorium remains effective until CIRP completion, resolution plan approval, or liquidation.
About New Bombay Paper Mills
New Bombay Paper Mills Private Limited, incorporated on November 26, 1998, is a private company specializing in the manufacture of various grades of kraft paper used predominantly in the packaging industry, particularly for corrugated boxes.
Financial Performance:
- Revenue: For the financial year ending March 31, 2022, the company reported revenues of ₹90.5 crore, reflecting a 42.48% increase compared to the previous year.
- Net Profit: The profit for the same period was ₹1.37 crore, marking a 35.03% improvement year-over-year.
- Net Worth: The company’s net worth experienced an 8.24% rise during this period.
Share Capital:
- Authorized Share Capital: ₹2.5 crore.
- Paid-Up Capital: ₹1.69 crore.
Management:
The company is managed by directors Mr. Kamal Kedia and Mr. Shivank Kedia.
Employee Strength:
As of June 30, 2024, the company employed 35 individuals.
Recent Developments:
The latest Annual General Meeting (AGM) was held on September 30, 2022.
Financial Summary Table:
| Financial Metric | FY Ending March 31, 2022 | Year-over-Year Change |
| Revenue | ₹90.5 crore | +42.48% |
| Net Profit | ₹1.37 crore | +35.03% |
| Net Worth | Not specified | +8.24% |
Also See: NARCL acquires stressed loans of McLeod Russel from consortium of banks
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