NCLT admits Kamachi Steels to insolvency over Rs 40.77 crore debt

The National Company Law Tribunal (NCLT), Chennai Bench, has ordered the initiation of the Corporate Insolvency Resolution Process (CIRP) against Kamachi Steels Private Limited. The order, relating to petition number CP(IB)/84(CHE)/2025, was pronounced by the Division Bench on October 15, 2025.

The petition was filed under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016, by the operational creditor, Greta Steels Pvt Ltd. The Tribunal’s bench, consisting of Sanjiv Jain (Judicial Member) and Venkataraman Subramaniam (Technical Member), admitted the petition, finding that the Corporate Debtor had defaulted on its operational debt.

Key details of the default

• Total Claimed Debt: The operational creditor’s petition detailed a total outstanding debt of Rs. 40,77,48,633.
• Principal and Interest: This figure includes a principal amount of Rs. 20,59,96,361 and accrued interest of Rs. 20,17,52,272 calculated at 18% per annum.
• Date of Default: The date of default was cited as June 30, 2019.
• Nature of Debt: The debt arose from the supply of materials, such as mild steel scrap, billets, and TMT bars, by Greta Steels Pvt Ltd for Kamachi Steels’ trading and manufacturing purposes.

IRP appointment and moratorium

Following the admission of the petition, Piyush Kisanlal Jani was appointed as the Interim Resolution Professional (IRP) for Kamachi Steels Private Limited.

With the commencement of the CIRP, a moratorium has come into effect as of the order date, in accordance with the provisions of the IBC. The operational creditor, M/s Greta Steels Pvt Ltd, has been directed to pay an amount of Rs 3,00,000 (Rupees Three Lakhs only) to the IRP to meet the initial expenses of the resolution process.

Profile of Kamachi Steels

Kamachi Steels Private Limited is an unlisted, Chennai-based private company incorporated in 1995. It is a key player in the steel sector, primarily operating as a manufacturer, trader, and supplier of steel products, including TMT bars, billets, and sponge iron, under its well-known ‘Kamachi TMT’ brand. The company reports annual revenues in the ₹100 crore to ₹500 crore range. Kamachi Steels is part of the larger Kamachi Group, which was established in 1978. The group has seen previous insolvency proceedings; its sister concern, Kamachi Industries Limited, was recently acquired in July 2024 through a separate NCLT-monitored liquidation process, highlighting the turbulent environment for the steel group’s entities.

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