Advance of ₹1.95 crore unpaid for Castor oil: NCLT admits Section 9 IBC plea against Evoq Remedies for failure to deliver goods or refund [Read Order]

In a recent order, the National Company Law Tribunal (NCLT), Ahmedabad Bench, admitted an insolvency petition filed by an operational creditor, a Panipat‑based proprietorship, against Evoq Remedies Limited after finding that the company failed to supply goods or refund an advance of ₹1.95 crore paid for castor oil.

After the operational creditor Harbhole Agrotech issued a demand notice under Section 8 of the Insolvency and Bankruptcy Code (IBC), Evoq Remedies failed to respond or raise any dispute. The tribunal observed that the debt and default were clearly established and that the petition met all statutory requirements under Sections 8 and 9 of the Code.

The bench comprising Judicial Member Shammi Khan and Technical Member Sanjeev Sharma noted that the operational creditor had placed a purchase order for FSG Castor Oil worth ₹2.14 crore in April 2025 and paid the advance in two tranches: ₹1.20 crore on 31 July 2025 and ₹75 lakh on 2 August 2025. Despite acknowledging receipt, Evoq Remedies neither delivered the goods nor refunded the amount, leading to default on 1 September 2025.

The bench observed that “the documents on record indicate that an amount of Rs.1,95,00,000/- was paid by the Operational Creditor to the Corporate Debtor and receipt thereof was acknowledged by the Corporate Debtor. However, despite receipt of the aforesaid advance amount, the Corporate Debtor neither supplied the goods nor refunded the advance amount”.

Citing the Supreme Court’s ruling in Mobilox Innovations v. Kirusa Software (2017), the bench reiterated that the adjudicating authority must verify the existence of debt, default, and any pre‑existing dispute before admitting a Section 9 application. In this case, no dispute was shown.

Consequently, the tribunal admitted the petition and initiated the Corporate Insolvency Resolution Process (CIRP) against Evoq Remedies Limited. It declared a moratorium under Section 14 of the IBC, prohibiting all recovery actions, asset transfers, and enforcement proceedings against the company.

The bench appointed Ms. Dipti Narayan Mundra, Insolvency Professional, as Interim Resolution Professional (IRP) to take charge of the company’s affairs and manage operations as a going concern. Harbhole Agrotech was directed to deposit ₹3 lakh towards initial CIRP expenses.

Accordingly, the Petition was admitted.

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