NCLT Delhi admits Quasar India into insolvency over unrefunded Rs 5.4 crore advance
The NCLT New Delhi bench on 31 October 2026 admitted Quasar India Limited into insolvency after holding that it did not supply goods or refund a Rs 5.39 crore advance to a buyer.
Key points
- The NCLT New Delhi bench admitted Quasar India Limited into insolvency on 31 October 2026 on an operational creditor's petition.
- The tribunal held that an unpaid advance of Rs 5,39,50,000 for agricultural goods was established and above the threshold.
- A moratorium now protects the company from suits and recovery, and the order may be appealed to the NCLAT.
The National Company Law Tribunal's New Delhi bench on 31 October 2026 admitted Quasar India Limited into the corporate insolvency resolution process. It acted on a petition by Bikit Private Limited, a buyer that paid an advance of Rs 5,39,50,000 for agricultural goods that, the tribunal found, were never delivered or refunded.
What Happened
According to the order, the two companies signed a memorandum of understanding on 25 June 2024 for the supply of agricultural and allied goods worth Rs 15 crore. Bikit paid the advance in three instalments between 29 June and 1 July 2024. The goods were due by 30 August 2024. Bikit demanded a refund on 9 September 2024, and the tribunal held that default began on 25 September 2024. Bikit claimed the advance plus 12% interest, a total of Rs 6,14,52,745.
Quasar India argued that the buyer had failed to pay a further 20% instalment, that there was a pre-existing dispute, and that the petition was really a recovery case. The tribunal rejected these points. It held that the next instalment became payable only on delivery of the first lot, which never happened. It noted that in letters of August and October 2024 the company had apologised for delay and acknowledged its obligation to refund the advance, citing supplier defaults and liquidity constraints. A claim to repay an advance under a supply contract is an operational debt, the tribunal said. The exact claim, including interest, will be verified during the process.
The tribunal appointed an interim resolution professional and declared a moratorium.
What It Means
Admission into insolvency is not a finding of fraud or mismanagement. Under the moratorium, suits, recovery actions and enforcement of security against the company are on hold, and its management passes to the interim resolution professional, who must make a public announcement inviting claims. Creditors, employees and suppliers of Quasar India should look for that announcement and file their claims within the time it sets. The order may be appealed to the National Company Law Appellate Tribunal.
Source: NCLT order
Sources & Citations
- NCLT order — National Company Law Tribunal