The National Company Law Appellate Tribunal (NCLAT) has stayed the operation of a National Company Law Tribunal (NCLT), Kolkata order admitting a Section 9 insolvency petition against Vikram Solar Limited over an alleged operational debt of ₹9.44 crore.

The NCLT had admitted the insolvency application filed by Isitva Steels Private Limited, an operational creditor engaged as a subcontractor for civil works in a solar power project undertaken by Vikram Solar for Andhra Pradesh Power Generation Corporation Limited (APGENCO). The operational creditor claimed that despite completion of the project and issuance of a performance certificate acknowledging satisfactory execution of the work, substantial dues remained unpaid.

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The NCLT held that the debt originated from the execution of civil works under the original contract and retained its character as an operational debt. The Tribunal observed that the 2019 settlement merely restructured payment obligations and did not extinguish the underlying contractual claims, particularly since the settlement was not fully performed. The NCLT further found that the operational creditor had established a default exceeding the statutory threshold under the Insolvency and Bankruptcy Code.

Pursuant to the NCLT’s admission order, CIRP was initiated against Vikram Solar. However, the order has now been stayed by the NCLAT, and the insolvency proceedings will remain subject to the outcome of the appeal.