NCLT admits Mumbai's Samrat Gems Impex into insolvency over Rs 1.37 crore supplier dues

The National Company Law Tribunal (NCLT), Mumbai bench, on 6 November 2026 admitted Samrat Gems Impex Private Limited, a Mumbai company incorporated in 1984, into the corporate insolvency resolution process. The petition was filed by a cloth supplier, Bhagyashri Textiles Private Limited, which claimed Rs 1.37 crore for goods it said were not paid for.

What Happened

According to the order, the supplier filed the petition on 30 July 2025 under Section 9 of the Insolvency and Bankruptcy Code, which lets an operational creditor such as a supplier seek insolvency proceedings against a company that has not paid its dues. It claimed a principal of Rs 1.31 crore for cotton cloth supplied against purchase orders of February 2025, plus Rs 6.55 lakh in interest, with the first default on 11 March 2025.

The company told the tribunal it had been unable to pay because of financial difficulties, including the unexpected cancellation of a large order by a buyer, and weak demand in the textile sector. The tribunal held that these reasons explained the company's stated inability to pay but did not show a dispute over the quality, quantity or supply of the goods before the demand notice. It found that an operational debt and a default above the legal threshold had been established, and admitted the petition.

The tribunal appointed an interim resolution professional, who now takes over the management of the company, and directed that the public announcement of the process be made immediately. The company's officers must hand over all documents within one week, and the supplier must deposit Rs 3 lakh towards the initial costs.

What It Means

Admission into insolvency is not a finding of fraud or mismanagement. It begins a process in which creditors file claims and a committee of creditors considers plans to revive the company.

A moratorium now bars suits, recovery action and the sale of the company's assets until the process ends. Suppliers, lenders, employees and others owed money by the company should file their claims with the interim resolution professional by the deadline the public announcement sets. The NCLT's order can be appealed before the National Company Law Appellate Tribunal (NCLAT).

Source: NCLT order