NCLAT upholds rejection of insolvency petition against Aarvee Denims
This story was originally published at 19:41 IST on 13 January 2025
Register to read our real-time news.Informist, Monday, Jan. 13, 2025
NEW DELHI – The National Company Law Appellate Tribunal Monday upheld an order by the Ahmedabad bench of the National Company Law Tribunal to reject Comet Performance Chemicals Pvt. Ltd.'s plea to start insolvency proceedings against Aarvee Denims & Exports Ltd. The appellate tribunal said the insolvency petition by Comet Performance Chemicals was not maintainable on multiple counts. "Therefore, the impugned order dated Jul. 2, 2024, rejecting dismissal of the petition does not suffer from any legal infirmity," the appellate tribunal said. "The appeal lacks merit and is accordingly dismissed without any costs."
The invoices dated between Nov. 29, 2019, and Feb. 7, 2020, and amounting to INR 3.6 million, fell within the restricted period under Section 10A of the Insolvency and Bankruptcy Code, 2016. The dues from these invoices were payable in a period of 120-180 days from the invoice date and so fell within the period of Section 10A. Deducting this amount from the total purported outstanding of INR 13.63 million reduces the admissible claim to INR 9.98 million, which remains below the statutory threshold of INR 10 million, the appellate tribunal said.
In 2018, Aarvee Denims & Exports had approached Comet Performance for the supply of goods, including various types of chemicals, for its textiles business. For the goods supplied, Comet Performance raised invoices from time to time from 2019 to 2021. As of Jul. 17, 2023, Aarvee Denims was liable to make a payment of INR 13.63 million, said Comet Performance. Thereafter, Comet Performance moved the Ahmedabad bench of the National Company Law Tribunal to start insolvency proceedings against the company.
On Monday, shares of Aarvee Denims ended 2% higher at INR 134.21 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
