NCLT Cuttack admits San Commodities LLP into insolvency over Rs 3.85 crore debt
The NCLT's Cuttack bench has admitted San Commodities LLP into the insolvency resolution process on an operational creditor's plea over an unpaid Rs 3.85 crore debt.
Key points
- The NCLT's Cuttack bench admitted San Commodities LLP into the corporate insolvency resolution process on 6 November 2026.
- The operational creditor claimed Rs 3.85 crore, and the tribunal held that an unrefunded advance for goods is an operational debt.
- A moratorium now applies, and the interim resolution professional will call for claims; the order may be appealed to the NCLAT.
Photo: Benjamin Child bchild311 / Wikimedia Commons, CC0 1.0 (cropped). Representational image.
The National Company Law Tribunal's Cuttack bench has admitted San Commodities LLP, a Bhubaneswar-based supplier of construction and industrial materials, into the corporate insolvency resolution process (CIRP) in an order pronounced on 6 November 2026. The tribunal acted on an application by an operational creditor over an unpaid debt of Rs 3.85 crore. The order is not a finding of fraud or mismanagement, and it may be appealed to the NCLAT.
What Happened
According to the order, the operational creditor, a road and infrastructure construction company, paid advances of Rs 7.42 crore to the LLP for supplies of TMT bars to its project sites. The LLP supplied materials worth Rs 3.42 crore and stopped supply of the balance worth Rs 4.01 crore, the creditor stated. Two cheques dated 16 April 2024, together worth Rs 3.85 crore, issued by the LLP to repay part of the advance, were returned unpaid on 17 April 2024, the order records.
The LLP did not reply to the creditor's demand notice of 19 February 2026, and nobody appeared for it before the tribunal, which proceeded ex parte (without hearing it) on 4 August 2026. The tribunal held that an unrefunded advance paid for goods is an "operational debt" under the Insolvency and Bankruptcy Code, and that the pending cheque-bounce cases did not show a pre-existing dispute.
The tribunal declared a moratorium under Section 14 of the Code, which bars suits, recovery actions and the sale of the LLP's assets while the process runs. It appointed an interim resolution professional and directed the creditor to deposit Rs 2 lakh within three days towards the process's costs. The CIRP begins from the date of the order.
What It Means
Control of the LLP's affairs passes to the interim resolution professional, who must keep it running as a going concern. The order directs the professional to make a public announcement of the process and call for claims under Sections 13 and 15 of the Code.
Creditors, suppliers, employees and workmen with dues from San Commodities LLP should watch for that announcement, which will set the last date for filing claims; the order itself does not give a date.
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal