Syska LED : The National Company Law Tribunal (NCLT) has accepted the petition of Sunstar Industries, the operational creditor of Syska LED Lights, and directed to initiate insolvency proceedings against the company. Syska LED Lights, a unit of Pune-based SSK Group, is in sectors such as LED lights, personal care devices, mobile accessories, home appliances, and smartwatches. The Mumbai bench of NCLT accepted the petition filed by Sunstar Industries claiming total dues of Rs 7.70 crore.

Why will bankruptcy proceedings continue?

The bench has suspended the board of directors of Syska LED Lights under the provisions of the Insolvency and Bankruptcy Code (IBC) and appointed Debashish Nanda as interim resolution professional. Rejecting the claims of Syska LED Lights in this case, NCLT said that the exchange of e-mails between the concerned parties shows that the company has liability towards the operational creditor. The bench said that we think that the applicant has succeeded in proving the existence of operational debt and its default on the part of the corporate debtor. Also, the application has been filed within the time limit.

The order had come earlier too

In its order passed on Tuesday, a two-member bench said, "We hold that this is a fit case under Section 9 of the Code." Earlier, the NCLT had also directed the initiation of a Corporate Insolvency Resolution Process (CIRP) against Syska LED Lighty on a petition filed by some other operational creditors. However, it was withdrawn in May, 2024 after a settlement was reached.