NCLT Orders Insolvency Against Bhilai Jaypee Cement Over Rs 45 Crore Default
The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution proceedings against Bhilai Jaypee Cement, a subsidiary of Jaiprakash Associates, for defaulting on Rs 45 crore owed to operational creditor Sidhgiri Holdings Pvt Ltd.
Key Developments
- NCLT’s Cuttack bench admits plea by Sidhgiri Holdings for unpaid coal supplies
- Interim resolution professional appointed, board suspended
- Moratorium imposed protecting company assets under IBC
- Parent company Jaiprakash Associates already undergoing CIRP
Court Proceedings and Ruling
A two-member bench comprising Deep Chandra Joshi and Banwari Lal Meena stated:
“We are inclined to hold that there exists an outstanding operational debt, a default and accordingly the present Application… for initiating CIRP of Bhilai Jaypee Cement is allowed and the corporate debtor is admitted.”
Background of the Debt
The dispute originated from three purchase orders totaling 6,000 MT of coal supplied between September 2021 and June 2022. Despite multiple invoices, Bhilai Jaypee Cement made only partial payments. Sidhgiri Holdings issued a statutory demand notice for Rs 45.40 crore (including interest) on June 22, 2024, which went unanswered.
Company’s Defense and Court’s Findings
Bhilai Jaypee Cement contested the petition, claiming solvency and inadequate documentation. However, the NCLT noted the company never disputed receiving coal supplies or the authenticity of invoices. The bench observed the cement maker accepted the debt’s existence in its reply, making its defense untenable.
Broader Context
This development comes as parent company Jaiprakash Associates undergoes its own CIRP, with Vedanta emerging as the winning bidder with a Rs 17,000 crore offer, surpassing Adani Group.
