NCLT Bengaluru admits Nadella Agrotech into insolvency over unpaid supplier dues

The National Company Law Tribunal (NCLT), Bengaluru bench, on 26 October 2026 admitted Nadella Agrotech Private Limited, a company with its registered office in Mangaluru, Karnataka, into the corporate insolvency resolution process (CIRP). CIRP is the process under the Insolvency and Bankruptcy Code (IBC) in which a professional takes over a company that has defaulted and creditors consider plans to revive it. The tribunal acted on a petition under Section 9 of the IBC by an operational creditor, a United States-based trading company that supplied goods to Nadella Agrotech.

What Happened

According to the order, the supplier said it delivered products, including palm olein in bulk, under a master sales agreement of 2024, and that balances on two invoices went unpaid after advance payments. The company objected on several grounds, including the supplier's identity, the validity of the agreement, the demand notice and the electronic records.

The tribunal rejected the objections. It noted that the company had acknowledged an overdue amount of USD 875,981.71 in November 2024 and had sought time to pay in December 2024. The default in the statutory demand notice and the Information Utility record was USD 1,087,565, about Rs 9.83 crore, above the Rs 1 crore threshold. The tribunal said the exact amount claimed, including late-payment charges, must still be verified and that its order does not settle it.

The tribunal declared a moratorium under Section 14 of the IBC, which bars suits against the company and the sale or transfer of its assets, and appointed an interim resolution professional. The supplier must deposit Rs 3 lakh within a week towards initial costs. The matter is listed on 11 January 2027.

What It Means

Admission into insolvency is not a finding of fraud or mismanagement. The company's board is suspended and the interim resolution professional takes control of its assets and records.

The tribunal directed the interim resolution professional to make a public announcement and invite claims from all creditors. Suppliers, lenders and employees owed money should watch for that announcement, which will give the deadline for filing claims. The NCLT's order may be appealed to the National Company Law Appellate Tribunal (NCLAT).

Source: NCLT order