Bankruptcy Looms for Syska LED Lights

9 Oct 2024 , 02:06 PM

Initiation of insolvency proceedings against Syska LED Lights has been ordered by the National Company Law Tribunal (NCLT), which has accepted the request submitted by its operating creditor, Sunstar Industries.

As a division of the Pune-based SSK Group, Syska LED Lights operates in the LED light, home appliance, mobile accessory, smart watch, and personal care appliance markets.

In accordance with the Insolvency & Bankruptcy Code (IBC), the Mumbai bench of the NCLT accepted the appeal submitted by Sunstar Industries, which claimed total dues of Rs 7.70 crore. Debashis Nanda was designated as the interim resolution professional, and the board of Syska LED Lights was suspended.

It denied Syska LED Lights’ assertions that there was an earlier disagreement, stating that the parties’ email correspondence proves its obligation to its operational creditor.

We believe that the applicant has successfully demonstrated operational debt and the corporate debtor’s default on it, that the application was submitted within the statute of limitations, and that there isn’t a prior disagreement between the parties regarding the transaction in question.

A two-member bench stated in its ruling handed on Tuesday that “therefore, we hold that it is a fit case for admission under Section 9 of the Code.”

For feedback and suggestions, write to us at [e-mail]