NCLT Cuttack Orders Initiation Of CIRP Against Bhilai Jaypee Cement Limited

The National Company Law Tribunal (NCLT), Cuttack Bench, Deep Chandra Joshi (Member-Judicial) and Banwari Lal Meena Banwari Lal Meena (Member-Technical) has initiated the CIRP against Bhilai Jaypee Cement Limited, a subsidiary of the debt-ridden group Jaiprakash Associates Limited, for a default of Rs 45 crore. The petition under section 9 of the IBC was filed by the operational creditor, Sidhgiri Holdings Pvt Ltd. Bhilai Jaypee Cement Limited used to purchase coal from the petitioner for the operations of its cement plant. The petitioner issued multiple invoices totaling Rs. 45 Cr. The corporate debtor acknowledged the dues but only made the payment of Rs. 1 Cr. Thereafter, the operational creditor issued a demand notice under section 8 of the demand notice; however, the corporate debtor ignored the notice. Bhilai Jaypee Cement Limited pleaded before the NCLT that the petition had been filed with the recovery intent and not for the insolvency resolution. It also pleaded that the application is defective. The NCLT observed that the debtor has not disputed the debt. Also, the email acknowledgement and partial payment corroborate the existence of debt, which qualifies as the 'operational debt.' Considering the contention of the debtor that the application is incomplete, the bench observed that the absence of certificates under section 65 B of the Evidence Act does not invalidate an IBC application. For this, the bench relied on the ruling of Pijush Banerjee v. IL & FS Financial Services Limited in Company Appeal (AT) (Insolvency) No. 1383 of 2022. The bench concluded that, “We are inclined to hold that there exists an outstanding operational debt, a default, and accordingly the present application under Section 9 of the Code read with Rule 6 of the Insolvency & Bankruptcy Rules, 2016, for initiating CIRP of Bhilai Jaypee Cement is allowed, and the corporate debtor is admitted.” Case Name: Siddhgiri Holdings Private Limited v. Bhilai Jaypee Cement Limited Case No.: CP(IB) No. 51/CB/2024 Coram: Deep Chandra Joshi (Member-Judicial) and Banwari Lal Meena Banwari Lal Meena (Member-Technical) Order Date: 15.10.2025 Click Here To Read/Download The Order

NCLT Cuttack Orders Initiation Of CIRP Against Bhilai Jaypee Cement Limited

Mohd.Rehan Ali

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