Vikram Solar Ltd secured a significant relief as the NCLAT set aside the NCLT's insolvency admission order. The ruling was based on the claim amount being below the ₹1 crore threshold, leading to the refund of ₹0.92 crore.
Vikram Solar Ltd: NCLAT Sets Aside Insolvency Order, ₹0.92 Cr Refunded
Vikram Solar Ltd has received a significant reprieve with the National Company Law Appellate Tribunal (NCLAT) setting aside a previous order that admitted an insolvency petition against the company. An amount of ₹0.92 crore, deposited during the proceedings, has also been ordered for refund.
Reader Takeaway: Insolvency threat removed; positive for operations and liquidity.
What just happened
The NCLAT, in an order dated 29 June 2026, overturned a 12 June 2026 decision by the NCLT, Kolkata Bench. The NCLT had initially accepted an insolvency petition filed by Isitva Steels Private Limited against Vikram Solar Limited.
The NCLAT's decision was based on the fact that the debt claim amount was less than the ₹1 crore threshold required under Section 4 of the Insolvency and Bankruptcy Code (IBC), 2016. Both Vikram Solar and Isitva Steels acknowledged this fact, leading to the termination of the insolvency proceedings.
Why this matters
This ruling is crucial for Vikram Solar's investors as it removes the immediate threat of insolvency proceedings. Such proceedings can significantly disrupt operations, impact financial health, and create reputational damage. The refund of ₹0.92 crore also improves the company's cash position.
The backstory
Vikram Solar Limited faced an insolvency petition initiated by Isitva Steels Private Limited. The NCLT had admitted the petition on 12 June 2026. As per a prior NCLT order on 24 June 2026, Vikram Solar had deposited ₹0.92 crore (₹91,98,556) in relation to these proceedings.
What changes now
The insolvency proceedings stand terminated. Vikram Solar can continue its business operations without the cloud of insolvency. The company is to receive a refund of the ₹0.92 crore it had deposited, subject to verification.
Risks to watch
While this specific insolvency threat is resolved, the company should maintain vigilance regarding its debt obligations and supplier relationships to prevent future such claims.
Peer comparison
Insolvency proceedings under IBC are a common occurrence for Indian companies. Successfully defending against such petitions, especially on technical grounds like claim thresholds, highlights robust legal and financial management.
Context metrics (time-bound)
- Order Date (NCLAT): 29 June 2026
- Order Date (NCLT Admission): 12 June 2026
- Deposit Date: 24 June 2026
- Refund Amount Ordered: ₹0.92 crore (₹91,98,556)
- IBC Threshold: Less than ₹1 crore
What to track next
Investors will monitor the company's continued operational performance and financial stability following the resolution of this legal challenge. The timely refund of the deposited amount will also be noted.