NCLT admits Heavy Engineering Corporation into insolvency over unpaid supplier dues
The NCLT Kolkata Bench has admitted Ranchi-based Heavy Engineering Corporation, a Government of India undertaking, into insolvency on a small supplier's plea over unpaid dues.
Key points
- The NCLT Kolkata Bench admitted Heavy Engineering Corporation into the corporate insolvency resolution process on 6 November 2026.
- The supplier's claim is Rs 6.63 crore including interest, of which Rs 3.47 crore is principal, with default dated 26 March 2021.
- A moratorium now applies to the company and an interim resolution professional takes charge; the order may be appealed to the NCLAT.
The National Company Law Tribunal's Kolkata Bench has admitted Heavy Engineering Corporation Private Limited, a Ranchi-based Government of India undertaking incorporated in 1958, into the corporate insolvency resolution process. The order, dated 6 November 2026, came on a petition by an operational creditor, a small engineering firm in Chennai registered as an MSME, which claims Rs 6.63 crore including interest.
What Happened
According to the order, the dues arise from two work orders, of July 2019 and May 2020, for supplying and fabricating horizontal sliding doors and for erecting and commissioning 10 sets of folding platforms. The order records that the platforms, at a PSLV integration building, were certified in a July 2024 joint inspection as being in use. The supplier raised invoices totalling Rs 6.65 crore and received part payments of Rs 2.18 crore, the order notes.
The tribunal held that the principal outstanding, Rs 3.47 crore, is above the Rs 1 crore threshold under Section 4 of the Insolvency and Bankruptcy Code, and fixed the date of default as 26 March 2021. It found no dispute raised before the demand notice and held the petition within limitation, relying on a July 2023 email from the company asking for fresh bills so that it could proceed with payment. The company appeared through counsel but did not file a reply, and the case was heard ex parte.
The bench appointed an interim resolution professional and directed the operational creditor to deposit Rs 2 lakh with them within a week for process expenses.
What It Means
Admission into insolvency is not a finding of fraud or mismanagement. It starts a process in which creditors file claims and a committee of creditors considers how the company's debts can be resolved. A moratorium under Section 14 of the Code now applies, which in general bars new suits and recovery actions against the company while the process runs.
Suppliers, lenders and employees with dues from the company would file their claims with the interim resolution professional once the public announcement of the process is issued. The order does not itself set a claims deadline. The order may be appealed to the National Company Law Appellate Tribunal.
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal