# In the matter of MAGMA INDUSTRIES LIMITED

> NCLT judgment dated 2026-04-09. Citation: TCN-2026-NCLT-00363. Aarti Industries Limited, an Operational Creditor, filed an application under Section 9 of the…

- **Court:** NCLT
- **Order date:** 9 Apr 2026
- **Citation:** TCN-2026-NCLT-00363
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-allahabad/magma-industries-limited-3d6cf874

## Summary

### Background

Aarti Industries Limited, an Operational Creditor, filed an application under Section 9 of the Insolvency and Bankruptcy Code, 2016, to initiate the Corporate Insolvency Resolution Process (CIRP) against Magma Industries Limited, the Corporate Debtor, due to its failure to pay an outstanding operational debt of Rs. 8,21,04,743/-.

## Facts

Aarti Industries Limited (Operational Creditor) filed an application under Section 9 of the IBC against Magma Industries Limited (Corporate Debtor) for an outstanding debt of Rs. 8,21,04,743/-.

The debt comprised a principal amount of Rs. 6,04,92,541/- and an interest amount of Rs. 2,16,12,203/- (calculated at 24% till 25.07.2024).

The Corporate Debtor issued purchase orders for Para Nitro Chloro Benzene (PNCB), Ortho Chloro Nitro Benzene (ONCB), and PNCB flakes.

The Operational Creditor supplied the materials as per the purchase orders, and the Corporate Debtor received them.

The Corporate Debtor failed to pay the amount within the stipulated 90-day period as per the tax invoices.

The Corporate Debtor issued cheques that were dishonored due to insufficient funds.

…

## Issues and analysis

### Issue 1: Whether there is a debt …

**Ratio:** The tribunal found that the Corporate Debtor admitted liability through emails and part

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**Reasoning:** The tribunal considered the purchase orders, tax invoices, dishonored cheques, emails

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**Interpretation:** The tribunal interpreted the evidence as establishing the existence of a

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**Application:** Based on the evidence and the provisions of Section 9 of the IBC, the tribunal

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## Parties

- **Judges:** Praveen…; Ashish…
- **Appellants:** Aarti Industries…
- **Respondents:** Magma Industries…
- **Other parties:** Rajesh Sriv…
- **Advocates:** Arjun S…; Rishabh…; +1 more

## Timeline

- **2024-10-30 — Application…**: The present Application has been filed on 30.10.2024 under Section 9 of the Insolvency…
- **2026-04-09 — Order Pron…**: Order Pronounced…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 9 — Application for initiation of corporate insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-9)

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