CIRP Petition can be rejected on Failure of Operational Creditors to Comply with S. 69(2) of Indian Partnership Act: NCLT

The Hyderabad bench of the National Company Law Tribunal (NCLT) has dismissed a Corporate Insolvency Resolution Process (CIRP) petition filed by Amogh Industrial Products against Mirchi Developers Pvt. Ltd. The petition was rejected due to non-compliance with Section 69(2) of the Indian Partnership Act, 1932, which mandates the registration of partnership firms. The tribunal found that Amogh Industrial Products failed to prove its registration as a partnership firm, improperly served the demand notice, and lacked evidence of debt and default. The case involved a claim for unpaid dues amounting to INR 1,40,81,130, including interest. Despite the operational creditor’s arguments, the NCLT held that the petition was not maintainable due to procedural lapses and non-compliance with statutory requirements. This ruling underscores the importance of adhering to legal provisions and procedural requirements in insolvency proceedings, ensuring that only valid and compliant petitions are entertained by the tribunal.