The National Company Law Tribunal (NCLT) Chandigarh has admitted Telephone Cables Limited into the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code, 2016. The tribunal's order dated February 19, 2026, in CP(IB) No.140/Chd/Chd/2024, marks the culmination of a complex legal journey spanning over two decades.

Case Transfer from High Court to NCLT

The case originated with a winding up petition (CP No.272 of 2003) filed against Telephone Cables Limited by M/s Bhushan Steel Limited in the Punjab & Haryana High Court. The High Court passed a winding up order on July 24, 2015, appointing the Official Liquidator to take over the company's assets.

The matter was subsequently transferred from the High Court to NCLT Chandigarh following an application by Stressed Assets Stabilization Fund (SASF), one of the secured creditors. The High Court, in its order dated March 22, 2024, directed that the entire record be transferred to NCLT Chandigarh, with instructions to proceed from the same stage reached before the High Court.

Financial Creditor and Debt Assignment History

The current application was filed by Omkara Assets Reconstruction Private Limited, which acquired the debt through a series of assignments. IDBI had initially extended various loans to Telephone Cables Limited between 1986-1998 for its manufacturing project:

IDBI later assigned its loan to SASF, which subsequently assigned the debt to Omkara Assets Reconstruction Private Limited through an assignment deed dated September 23, 2024.

Default Amount and Debt Composition

The tribunal noted that the application under Section 7 of IBC was filed for a default amount of ₹1806.56 crores as on April 30, 2024. The comprehensive debt breakdown includes:

The date of default was established as July 24, 2015, when the winding up order was passed by the High Court. The default was also evident from the company's Annual Balance Sheet as on March 31, 2014, wherein it acknowledged its default.

Corporate Debtor's Business Operations

Telephone Cables Limited was incorporated on April 11, 1983, to set up facilities for manufacturing Polyethylene insulated jelly-filled telephone cables with an installed capacity of 6.25 lakhs conductors KM per annum. The company was incorporated and the factory was established in 1989, operating for more than 15 years before facing financial stress. The company failed to adhere to financial discipline, leading to loan recall and failure to honor commitments to other creditors.

NCLT Order and Key Directions

The tribunal has issued several comprehensive directions for the resolution process:

Moratorium Declaration: A moratorium under Section 14 of IBC has been declared, prohibiting institution of suits, transfer of assets, enforcement of security interests, and recovery of property.

Interim Resolution Professional Appointment: Ducturus Resolution Professionals Pvt. Ltd., through its Director Ms. Sunita, has been appointed as the Interim Resolution Professional with registration number IBBI/IPE-0026/IPA-1/2022-23/50040.

Financial Arrangements: The financial creditor has been directed to pay an advance of ₹4.00 lakhs to the IRP within two weeks to meet initial CIRP costs.

The Corporate Insolvency Resolution Process will remain effective until completion of the resolution process, approval of a resolution plan under Section 31, or liquidation order under Section 33 of the IBC, 2016. All stakeholders connected with the corporate debtor are legally obligated to extend assistance and cooperation to the Interim Resolution Professional under Section 19 of the Code.