NCLAT sets aside insolvency proceedings against Vikram Solar

The National Company Law Appellate Tribunal (NCLAT) has set aside the corporate insolvency resolution process (CIRP) initiated against Vikram Solar Limited, overturning an earlier order of the National Company Law Tribunal (NCLT), Kolkata Bench. The appellate tribunal’s order, dated June 29, 2026, effectively terminates the insolvency proceedings initiated against the solar module manufacturer.

Background of the case

The dispute arose from an insolvency petition filed by Isitva Steels Private Limited under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. On June 12, 2026, the NCLT admitted the petition over unpaid dues of Rs 91,98,556 relating to civil works executed for an Andhra Pradesh Power Generation Corporation (APGENCO) solar project.

According to the petition, Vikram Solar had awarded the contract in February 2018, the work was completed in December 2018, and retention money, pending bills and interest remained unpaid.

Vikram Solar argued that both parties had entered into a full and final settlement in December 2019 and that the remaining dispute related to settlement instalments rather than operational debt. The NCLT, however, admitted the petition, holding that the claim qualified as operational debt under the IBC.

NCLAT decision

The NCLT order was challenged before the NCLAT by Sameer Nagpal, suspended director of Vikram Solar.

During the hearing, the appellant argued that the petition under Section 9 of the IBC should not have been admitted because the claim amount was below the Rs 1 crore threshold prescribed under Section 4 of the IBC. Counsel for Isitva Steels acknowledged that the debt was below Rs 1 crore, and both parties agreed that the admission order should be set aside.

Based on these submissions, the NCLAT quashed the NCLT’s June 12, 2026 order. It also directed that the Rs 91,98,556 deposited by the appellant pursuant to its interim order dated June 24, 2026, be refunded after due verification. The tribunal further granted both parties the liberty to pursue a settlement.

Interim stay

Before its final ruling, the NCLAT had granted interim relief on June 24, 2026, staying the operation of the NCLT order and restraining the interim resolution professional from taking further action under the CIRP.

During those proceedings, Vikram Solar had expressed willingness to deposit the entire admitted claim amount, which Isitva Steels confirmed would constitute a full and final settlement.

Financial position

In its stock exchange filing, Vikram Solar stated that it continues to operate normally and remains financially sound. For FY26, the company reported revenue of Rs 4,802.25 crore and a profit after tax of Rs 470.42 crore.

As of March 31, 2026, the company had no long-term debt, while its working capital net debt stood at Rs 64 crore, resulting in a debt-to-equity ratio of 0.03. Its net working capital cycle improved to 44 days in FY26 from 82 days in the previous financial year.