NCLT admits Bhilai Jaypee Cement for insolvency over Rs 45-crore coal debt

The National Company Law Tribunal (NCLT), Cuttack Bench, has admitted Bhilai Jaypee Cement Limited for corporate insolvency after it defaulted on an operational debt of over Rs 45 crore owed to a coal supplier.

The order was passed on October 15, 2025, by a bench comprising Member (Judicial) Deep Chandra Joshi and Member (Technical) Banwari Lal Meena, allowing a petition filed by Siddhgiri Holdings Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.

The dispute arose from three purchase orders placed by Bhilai Jaypee Cement in late 2021 and early 2022 for the supply of 6,000 metric tonnes of coal. Siddhgiri Holdings supplied the coal and raised multiple invoices between September 2021 and May 2022. While the respondent corporate debtor made some payments, a principal amount of approximately Rs 30.08 crore, along with interest, remained unpaid, culminating in a total claimed default of Rs 45.40crore.

Siddhgiri Holdings issued a statutory demand notice on June 22, 2024, but received no response from the cement company, prompting it to move the NCLT.

Corporate debtor’s defences rejected

Bhilai Jaypee Cement contested the application on several technical grounds. It argued that the petition was a recovery suit, not a genuine insolvency proceeding, and that the company was solvent. It also highlighted alleged defects in the application, including:

• The absence of a bank certificate confirming the unpaid debt.
• The lack of a default certificate from an Information Utility.
• Defective affidavits due to a mismatch between the deponent’s address and the place of notarization.
• The failure to provide certificates under Section 63 of the Bharatiya Sakshya Adhiniyam (BSA), 2023, for digital evidence like emails, bank statements, and GST forms.

Tribunal’s Reasoning

The NCLT, however, found these objections unsustainable. The bench noted that the core requirement for admitting a Section 9 application, as laid down by the Supreme Court in the Mobilox case, is to establish the existence of an undisputed operational debt and a default.

Crucially, the tribunal observed that Bhilai Jaypee Cement had not disputed the receipt of coal supplies, the genuineness of the invoices, or the quantum of the debt in its reply. The respondent merely stated that the contents of the application were “matters of record,” which the NCLT interpreted as an implicit admission of the debt.

On the technical shortcomings, the bench ruled:

• The requirements for a bank certificate and an Information Utility certificate are “directory,” not “mandatory,” as the relevant sections of the IBC use the qualifying phrase “if available.”
• The absence of a BSA certificate for digital evidence was immaterial since the existence of the debt was established through invoices and, importantly, admitted by the respondent.
• There is no legal requirement for an affidavit to be notarized at the deponent’s place of residence.

While the tribunal did note a date anomaly where some invoices predated a purchase order, it concluded that deducting those amounts would not change the fact that the total debt far exceeded the Rs. 1 crore threshold for initiating insolvency.

Insolvency Process Commences

With the admission of the application, the NCLT immediately declared a moratorium under Section 14 of the IBC, prohibiting any legal actions, transfers of assets, or recovery proceedings against Bhilai Jaypee Cement. The moratorium will remain in effect until the completion of the Corporate Insolvency Resolution Process (CIRP).

The tribunal appointed Ashutosh Khemani as the Interim Resolution Professional (IRP) to manage the company’s affairs, take control of its assets, and invite claims from creditors. The applicant has been directed to deposit Rs. 2 lakhs with the IRP to fund the initial costs of the CIRP.

The case is CP(IB) No. 51/CB/2024.

Also See: Jaypee Associates approves insolvency proceedings for Bhilai Jaypee Cement