NCLT initiates insolvency proceedings against a security firm over ₹1.03 crore in unpaid dues owed to a Goregaon café | Representational Image
Mumbai: The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against M/s Trig Guardforce Limited, a security solutions provider, following a petition filed by a Goregaon-based café. The café, identified as the operational creditor, filed the insolvency petition against the security firm for non-payment of dues.
The NCLT has appointed Renascence Insolvency Resolution Professionals Private Limited as the Interim Resolution Professional (IRP) and directed the café to deposit ₹3 lakhs towards the initial insolvency process.
In its order, the tribunal noted that the evidence clearly demonstrated the existence of operational debt, and the default had been established on record.
The security firm had been purchasing goods from M/s Sawant Café from time to time during the period 2016 to 2023 under an agreement dated April 1, 2016. Initially, the café received lump-sum payments on several occasions. However, 41 invoices, amounting to ₹1,03,49,072, remained unpaid.
The last payment of ₹1 lakh was made by the security firm in August 2023. After that, no further payments were made by the corporate debtor to the operational creditor.
In its defense, the security firm admitted that it owed ₹1,03,49,072 to the café but stated that its business had been severely affected post-COVID-19. It claimed to have suffered irreversible losses, leaving it incapacitated and unable to clear the outstanding dues.
The tribunal while passing its orders held: “During the course of arguments, counsel for the petitioner argued that the corporate debtor failed to make payments on 41 invoices issued between April 9, 2016, and October 10, 2023. These invoices total ₹1,03,49,072. After considering the contentions of both parties, we are of the considered view that the existence of operational debt amounting to ₹1,03,49,072 has been established on record. The corporate debtor failed to make payments despite the issuance of a demand notice.”
The NCLT, therefore, initiated insolvency proceedings against the security firm.
