NCLT admits Varanasi distributor Shreeshyam Trade Ventures into insolvency on Campus plea
The NCLT's Allahabad bench on 26 October 2026 admitted Shreeshyam Trade Ventures into insolvency on a petition by footwear maker Campus Activewear, which said Rs 1.38 crore remained unpaid.
Key points
- The NCLT's Allahabad bench admitted Shreeshyam Trade Ventures Private Limited into insolvency on 26 October 2026.
- Campus Activewear Limited said Rs 1.38 crore of an admitted liability of Rs 3.25 crore was still unpaid, per the order.
- A moratorium now bars suits and recovery actions; the tribunal will hear the matter next on 30 November 2026.
The National Company Law Tribunal's Allahabad bench at Prayagraj on 26 October 2026 admitted Shreeshyam Trade Ventures Private Limited, a Varanasi-based distributor, into the corporate insolvency resolution process. The petition was filed by footwear maker Campus Activewear Limited as an operational creditor, a creditor owed money for goods supplied. Campus said Rs 1.38 crore was outstanding and claimed Rs 1.97 crore including interest, according to the order.
What Happened
The order records that the two companies signed a distributor agreement on 6 December 2018, under which Campus supplied shoes and footwear to the distributor. Campus said it raised invoices worth Rs 5.57 crore that were not paid.
After a demand notice in October 2021, the distributor signed an undertaking on 29 January 2022 admitting a liability of Rs 3.25 crore and issued 44 post-dated cheques. Campus told the tribunal it had received Rs 1.87 crore, that six cheques were dishonoured and that Rs 1.38 crore remained unpaid. It gave the date of default as 1 January 2023. In a reply dated 6 December 2024, the distributor said it was ready to pay Rs 1.38 crore, according to the order.
The tribunal found the conditions for admission met and ordered the insolvency process to begin. As Campus had not proposed an insolvency professional, the tribunal appointed one as interim resolution professional. It directed Campus to deposit Rs 1 lakh for initial expenses and listed the matter for a progress report on 30 November 2026.
What It Means
Admission into insolvency is not a finding of fraud or mismanagement. A moratorium now applies from the date of the order: no suits or recovery proceedings can continue against the company, its assets cannot be sold or transferred, and secured lenders cannot enforce their security until the process ends.
The suspended board must give the interim resolution professional full access to the company's books, and the professional must make a public announcement calling for claims. Suppliers, lenders and others owed money by the distributor should file claims as that announcement sets out. The order may be appealed to the National Company Law Appellate Tribunal (NCLAT).
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal