NCLT refuses insolvency plea against Indo Laminates, rules IBC cannot be used for recovery

The NCLT, New Delhi, has dismissed a Section 7 IBC plea filed by Akshay Kumar Rout against Indo Laminates Pvt. Ltd. for an alleged default of ₹1.13 crore.

The Tribunal held that IBC proceedings cannot be used as a tool for recovery, particularly against solvent companies.

Indo Laminates admitted to taking the loan but explained that repayment was delayed due to heavy losses from a fire accident. 

The Bench noted the company’s clean track record and long-standing business relationship with the applicant. Finding that the intent was recovery, not resolution, the NCLT refused to initiate a Corporate Insolvency Resolution Process (CIRP).