NCLT Indore Admits Marvel Industries Insolvency Plea Against Flexituff Technology

The Indore bench of the National Company Law Tribunal (NCLT) has initiated insolvency proceedings against FIBC manufacturer Flexituff Technology International Ltd.

The tribunal found that the company had acknowledged an operational debt of ₹1.92 crore, made part-payment and issued post-dated cheques towards the balance, three of which were dishonoured.

The order was passed by the bench of Judicial Member Brajendra Mani Tripathi and Technical Member Man Mohan Gupta.

The operational creditor traced its claim to a Memorandum of Understanding (MOU) dated 8 September 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 Rs 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.

Operational Creditor asserted that the debt was admitted in writing, part‑paid, and secured by cheques. It also pointed out that no pre-existing dispute existed and that the default exceeded the threshold under Section 4.

The Corporate Debtor denied liability, contending it was a stranger to the MOU with FVIL. It alleged that the petition was filed to coerce payment. It was also pointed out that the Applicant had failed to state the date of default in Part IV of the application.

It claimed that the applicant had already received payments from overseas customers or export credit insurance (ECGC), and that the letter of 9 September 2024 was obtained under coercion.

The Tribunal held that Flexituff's own letter dated 9 September 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. The bench observed,

“A debt so admitted, part-paid and secured by cheques of the Corporate Debtor's own hand is a duly acknowledged debt of the Corporate Debtor, whatever the position between the Applicant and FVIL may have been at the outset.”

Technical objections about omission of default date or absence of bank statements were matters of form, not substance, since default was evident from the debtor's own letter and dishonoured cheques.

Defences alleging coercion, prior payment by customers, or ECGC claims were unsupported by evidence. Notably, Flexituff made a further payment two months after the letter it claimed was coerced, and never sought to set aside the document.

The Tribunal concluded that an operational debt of Rs 1.14 crore existed, default had occurred, the application was within limitation, and no pre‑existing dispute was established under Section 5(6) read with Section 8(2)(a) of the Code.

Accordingly, the petition was admitted, and CIRP was initiated against Flexituff Technology International Ltd. A moratorium under Section 14 was imposed, and Apeksha Kekre was appointed Interim Resolution Professional (IRP).

For Applicants: Advocate Aryan Gupta

For Respondents: Advocate Akshat Agrawal