Pranav B Prem

The National Company Law Tribunal (NCLT), Mumbai Bench-VI comprising Shri Nilesh Sharma (Judicial Member) and Shri Sameer Kakar (Technical Member), has admitted an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, filed by Aryatech Platforms Pvt. Ltd. against Tirumalla Agro Industries Pvt. Ltd., a unit of the Kute Group.

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Tirumalla Agro becomes the second company from the Kute Group to face insolvency proceedings. The group has been in controversy following a massive ₹2,500 crore co-operative society fraud, with its founders, Suresh Kute and his wife Archana Kute, presently in custody. The Enforcement Directorate is investigating the alleged diversion of ₹2,500 crore to various group entities, and assets worth ₹1,433.4 crore have been attached.

Background of the Case

Aryatech Platforms Pvt. Ltd. (Operational Creditor) and Tirumalla Agro Industries Pvt. Ltd. (Corporate Debtor) entered into a Short-Term Procurement Facility Agreement on September 12, 2023, for the procurement and supply of agricultural commodities. Aryatech alleged that the corporate debtor defaulted on payments amounting to ₹1,11,69,393, inclusive of penal charges. The operational creditor contended that it had provided goods and services under the agreement and raised invoices aggregating to ₹1,00,61,430. Penal charges of ₹21,07,963 were added in accordance with Clause 2.3 of the agreement, which allowed a levy of 0.066% per day for delayed payments. After adjusting a part payment of ₹10,00,000 made by the corporate debtor, the default stood at ₹1.12 crore. Despite repeated legal notices, including a final demand notice under Section 8 of the IBC, the corporate debtor failed to clear the dues. The creditor also produced correspondence where Tirumalla Agro, through its advocates, had acknowledged its liability and sought time to pay.

Submissions of the Corporate Debtor

The corporate debtor did not file a substantive reply despite several opportunities granted by the Tribunal. Its right to file a reply was closed by order dated May 28, 2025. Later, it submitted written arguments raising only technical objections, such as alleging that the additional affidavit filed by the operational creditor was delayed and that invoices were not properly attached. It also argued that most delivery notes predated the execution of the facility agreement and therefore could not support the claim.

Tribunal’s Observations

After perusing the documents and hearing the submissions, the NCLT noted that the operational creditor had supplied goods in accordance with the procurement agreement and placed on record the necessary documents — including invoices, penal invoices, delivery notes bearing the corporate debtor’s stamp, and the ledger account reflecting transactions. The Tribunal observed that the corporate debtor had itself acknowledged its dues through replies dated March 20, 2024, and March 22, 2024, sent on behalf of the Kute Group, seeking time to make payments. It further held that the objection regarding invoices was factually incorrect since copies of invoices and penal invoices were indeed filed with the application.

The Bench found that the corporate debtor had defaulted on a payment of ₹1,11,69,393 and failed to raise any pre-existing dispute either prior to or after receipt of the Section 8 demand notice. The Tribunal remarked that the belated technical objections could not be treated as a “dispute” under Section 5(6) of the IBC, especially when liability was already admitted.

Decision of the Tribunal

Holding that the operational creditor had successfully established the existence of operational debt and default exceeding the statutory threshold of ₹1 crore, the NCLT admitted the petition under Section 9 of the Insolvency and Bankruptcy Code, 2016. The Tribunal declared a moratorium under Section 14, prohibiting all legal proceedings, asset transfers, and recovery actions against Tirumalla Agro Industries Pvt. Ltd. It appointed Mr. Srigini Rajat Naidu as the Interim Resolution Professional (IRP) to take charge of the company’s affairs and conduct the Corporate Insolvency Resolution Process (CIRP). The IRP was directed to make a public announcement inviting claims from creditors and to manage the corporate debtor as a going concern. The operational creditor was also directed to deposit ₹3,00,000 as advance expenses for the CIRP.

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Accordingly, the NCLT admitted the insolvency petition against Tirumalla Agro Industries Pvt. Ltd. under Section 9 of the IBC and initiated the Corporate Insolvency Resolution Process, marking another blow to the Kute Group amidst ongoing investigations into its financial irregularities.

Appearance

For Operational Creditor: Adv. Mr. Rakshith Srivastava, Adv. Mr. Ashutosh Kumar Tiwari

For Corporate Debtor: Adv. Mr. Manoj Kumar Mishra

Cause Title: Aryatech Platforms Pvt. Ltd. v. Tirumalla Agro Industries Pvt. Ltd.

Case No: CP (IB) 181/MB/2025

Coram: Shri Nilesh Sharma (Member-Judicial), Shri Sameer Kakar (Member-Technical)