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Informist, Wednesday, May 20, 2026

 

NEW DELHI – The Delhi bench of the National Company Law Tribunal has issued a notice to Hero MotoCorp Ltd. on Naxnova Technologies Pvt. Ltd.'s insolvency plea for alleged unpaid dues of INR 239.36 million. The tribunal rejected Hero MotoCorp's argument that Naxnova Technologies' insolvency petition was not maintainable and should be rejected at the threshold. The tribunal will hear the case next on Jun. 5.

 

The tribunal said that Hero MotoCorp's objections relating to the existence of a pre-existing dispute, pendency of arbitration proceedings, allegations of suppression of material facts are issues going to the merits and statutory thresholds governing admission or rejection of the insolvency petition and not to its maintainability in the strict procedural sense. Permitting such objections to be adjudicated at the pre-notice stage would amount to converting a summary threshold scrutiny into a full-fledged adjudicatory exercise, which is neither contemplated under the scheme of the Insolvency and Bankruptcy Code, 2016 nor permissible in law, said the tribunal.

 

"We are of the considered view that the present application satisfies the threshold requirements of maintainability and cannot be rejected at this stage on the grounds urged by the corporate debtor," said the tribunal. The objections raised by Hero MotoCorp can be raised by filing a detailed reply affidavit and be considered at the time of arguments, it added.

 

Naxnova Technologies said that the dues arose from supplies made under a vendor supply agreement in 2009, as amended by an agreement in 2016 and various purchase orders with Hero MotoCorp. On non-payment of these dues, Naxnova Technologies moved the tribunal to start insolvency proceedings against Hero MotoCorp.

 

Hero MotoCorp said that there was no provision in 2016 Code and insolvency regulations that allowed Naxnova Technologies to issue multiple demand notices to the corporate debtor. Hero MotoCorp said that there existed a pre-existing dispute between the parties. The dispute is regarding the quality of goods supplied by Naxnova Technologies and the alleged breach of contractual obligations by them, said Hero MotoCorp. These disputes, including claims and counterclaims relating to the alleged operational debt and quality of goods, are already sub judice before an arbitral tribunal, said Hero MotoCorp.

 

Naxnova Technologies said Hero MotoCorp cannot be allowed to contest maintainability by delving into the merits of the matter before issuance of notice. Hero MotoCorp further said that the objections relating to the issuance of multiple demand notices and the existence of pre-existing disputes cannot be grounds on maintainability. 

 

At 1236 IST, shares of Hero MotoCorp were down 0.2% at INR 4,995.50 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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