NCLAT rejects insolvency plea against Voltas, upholds NCLT order
What's the story
The National Company Law Appellate Tribunal (NCLAT) has rejected an insolvency petition against Tata Group company Voltas. The plea was filed by Air Wave Technocrafts, one of Voltas's operational creditors. The NCLAT upheld the earlier decision of the Mumbai-bench of the National Company Law Tribunal (NCLT), which had dismissed the petition on May 27, 2025, citing a pre-existing dispute.
Tribunal agreement
NCLAT agrees with NCLT's findings
The NCLAT agreed with the NCLT's observation that an email exchange between Air Wave Technocrafts and Voltas indicated ongoing disputes over work certification, amounts, and supporting documents. The appellate tribunal said it saw no reason to disagree with the lower court's decision to reject the Section 9 application on valid grounds of pre-existing disputes. "We find no merit in the Appeal," said NCLAT while dismissing it.
Case details
Background of the dispute
Air Wave Technocrafts was hired by Voltas to provide services for operating and maintaining HVAC systems at different worksites. The operational creditor raised invoices for services rendered, backed by necessary documents such as ESI/PF challans and Wages Register, which were forwarded to their clients after verification. However, Voltas later defaulted on its payment obligations, prompting Air Wave Technocrafts to file an insolvency petition against it. Voltas disputed the outstanding liability and raised issues of limitation, adding complexity to the situation.
Legal proceedings
Insolvency petition filed, dismissed by NCLT
Air Wave Technocrafts claimed a total debt of ₹1.20 crore and issued a demand notice on February 17, 2024. However, Voltas did not make further payments and disputed the outstanding liability, including raising the issue of limitation. In response to this, Air Wave Technocrafts had filed a Section 9 application for the initiation of Corporate Insolvency Resolution Process against Voltas before NCLT on August 29, 2024.