NCLT orders insolvency against Bhilai Jaypee Cement over Rs 45 crore coal debt
The National Company Law Tribunal has initiated insolvency proceedings against Bhilai Jaypee Cement after the firm failed to repay 45 crore rupees owed to a coal supplier. The Cuttack bench admitted a petition from Sidhgiri Holdings Private Limited, which delivered 6,000 metric tonnes of coal between September 2021 and June 2022 but received only partial payment. The supplier sent a statutory demand notice in June 2024 seeking 45.40 crore rupees, which comprised 30.08 crore rupees in principal and 15.32 crore rupees in interest.
The tribunal rejected arguments from Bhilai Jaypee Cement that the case aimed solely at debt recovery rather than addressing insolvency. Members Deep Chandra Joshi and Banwari Lal Meena ruled that invoices clearly established the debt and that the cement company never disputed the amount owed. An Interim Resolution Professional has been appointed to manage the company while its board remains suspended. The parent firm, Jaiprakash Associates Limited, faces separate insolvency proceedings.
