The National Company Law Appellate Tribunal (NCLAT) at Delhi has set aside the insolvency proceedings against FIBC manufacturer Flexituff Technology International Ltd.
The order was passed by the Bench of Judicial Member Justice Yogesh Khanna and Technical Member Barun Mitra, The Bench observed,
"..the adjudicating authority has erroneously admitted the application under Section 9. We allow the appeal, set aside the impugned order. The Corporate Debtor is released from the rigours of CIRP and is allowed to function independently through its board of directors."
The appeal was filed by Lalit Narware, Ex-Director of Flexituff Technology International Limited against an order of the Indore Bench of the National Company Law Tribunal (NCLT) on September 9, 2026. By the order the NCLT had initiated the Corporate Insolvency Resolution Process (CIRP) against Flexituff on an application of Marvel Industries & Services Pvt Ltd.
The operational creditor traced its claim to a Memorandum of Understanding (MOU) dated September 8, 2022 with Flexituff Ventures International Ltd. (FVIL), a company associated with the Corporate Debtor. Under the MoU, Marvel acted as an export intermediary for FVIL. Following reconciliation, FVIL owed Rs 1.92 crore, which Flexituff Technology International Ltd. expressly assumed by letter dated 9 September 2024.
The corporate debtor part‑paid ₹78 lakh, issued four post‑dated cheques for the balance. Three cheques were dishonoured, leaving Rs 1.14 crore outstanding. A demand notice dated 18 February 2025 under Section 8 elicited no payment or dispute, prompting the Section 9 petition.
The Tribunal held that Flexituff's own letter dated September 9, 2024, part‑payment, and issuance of post-dated cheques constituted clear acknowledgement of debt and that objections regarding privity with FVIL were immaterial once Flexituff assumed liability.
However, the NCLAT declined to entertain the CIRP and set aside the insolvency order.