National Company Law Tribunal Initiates Insolvency Resolution Process Over ₹9.44 Crore Operational Debt Dispute

The National Company Law Tribunal (NCLT), Kolkata Bench, has admitted an insolvency petition against renewable energy company Vikram Solar Limited and ordered the commencement of the Corporate Insolvency Resolution Process (CIRP). The order was pronounced on June 12, 2026, following a petition filed by operational creditor Isitva Steels Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.

The dispute relates to civil works carried out for a solar power project in Andhra Pradesh. Vikram Solar had secured the Engineering, Procurement, and Construction (EPC) contract from Andhra Pradesh Power Generation Corporation Limited (APGENCO) and later awarded the civil works contract to Isitva Steels in February 2018. According to the petition, the project was successfully commissioned in December 2018, and Vikram Solar issued a satisfactory performance certificate to the contractor in October 2019.

Despite the completion of work, Isitva Steels claimed that a substantial amount remained unpaid. The creditor stated that the total default amounted to Rs. 9.44 crore, including a principal amount of Rs. 5.22 crore and contractual interest at 14 percent per annum. Both parties had entered into a settlement agreement in December 2019 for a reduced payment amount, but Vikram Solar allegedly failed to comply with the agreed payment schedule.

Vikram Solar opposed the insolvency plea, arguing that the claim arising from a settlement agreement could not be treated as an operational debt under the IBC. The company also challenged the amount claimed and disputed the inclusion of interest for meeting the insolvency threshold.

After examining the submissions, the NCLT rejected Vikram Solar’s objections and held that the operational debt remained valid despite the failed settlement. The tribunal also accepted the contractual interest claim and concluded that the default exceeded the prescribed threshold.

The NCLT has imposed a moratorium on the company and appointed Ms. Tripti Agarwal as the Interim Resolution Professional. The next hearing in the matter is scheduled for July 24, 2026.