Burnpur Cement Limited has informed the Exchange about Action(s) taken or orders passed
Awaiting price reaction for this filing.
The NCLT Kolkata Bench has dismissed an insolvency petition (C.P(IB) No. 37/KB/2022) filed by Mittal Polysacks Private Limited against Burnpur Cement under Section 9 of the Insolvency and Bankruptcy Code. The operational creditor had claimed Rs. 1.25 crore in principal plus Rs. 1 crore in interest (total ~Rs. 2.26 crore) for polypropylene cement bags allegedly supplied in 2016. The Tribunal found that a pre-existing dispute existed — there was no written agreement, no delivery proof, the supplier was a related party of the company's erstwhile promoter, and the new management had reversed the balance sheet entries after discovering irregularities. The company will continue to operate as a going concern with no insolvency proceedings initiated against it.
This is a positive outcome for Burnpur Cement shareholders — the threat of insolvency proceedings has been removed, and the company continues as a going concern. However, the underlying Rs. 2.26 crore claim is not extinguished and the creditor may pursue other legal remedies.