Disclosure of demand notice received under IBC Code, 2016.
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Bihar Sponge Iron Limited has disclosed receiving a Demand Notice under the Insolvency and Bankruptcy Code, 2016, from M/s Gohil Enterprises Private Limited. The notice pertains to an alleged unpaid operational debt. The total amount claimed is Rs. 1,97,94,250 (approximately Rs. 1.98 crore). The company states the matter is under review and it is taking legal steps. Crucially, the company has clarified that it has neither acknowledged nor admitted the claim and has not recognized any liability. The disclosure is being made considering the materiality of the amount involved.
This demand notice signals potential financial stress but the company has explicitly denied liability. Until the claim is admitted or resolved through NCLT, the impact on shareholders remains uncertain and could create negative sentiment around the stock.