The National Company Law Tribunal (NCLT) Indore Bench dismissed an insolvency application filed by Oswal Woollen Mills Limited against EKI Energy Services , ruling that a genuine pre-existing dispute existed between the parties.

The order, dated September 3, 2026, rejects the petition seeking initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency and Bankruptcy Code (IBC). The tribunal found that disagreements over contractual pricing and payment mechanisms preceded the statutory demand notice issued in April 2024.

Dispute Background

Oswal Woollen Mills filed the application under CP(IB)/56(MP)2025, claiming an operational debt of ₹1,28,74,296 plus interest of ₹56,53,413.23, totaling ₹1,85,27,709. The claim arose from an Emission Reduction Purchase Agreement (ERPA) signed on April 12, 2022, for the supply of Certified Emission Reductions (CERs).

The applicant alleged that EKI Energy failed to pay for 70,085 CERs delivered on January 13, 2023. The contract specified rates of $1.0 per CER for Compliance Period 1 and $2.5 per CER for Compliance Period 2.

Tribunal Findings

The NCLT bench comprising Shri Brajendra Mani Tripathi and Shri Man Mohan Gupta identified several grounds for dismissal:

• Pre-existing dispute: Correspondence from March 2023 showed EKI Energy invoked Clause 2.14(m) of the ERPA to propose revised prices due to market dynamics, offering $0.40 per CER for CP1 and $1.35 per CER for CP2.
• Contractual interpretation: The tribunal noted that determining whether payment was contingent on trading proceeds or fixed upon delivery required substantive adjudication beyond the summary jurisdiction of Section 9 IBC.
• Quantity discrepancy: A difference of 1,540.86 CERs between the claimed amount and registry records further complicated the debt crystallization.

What the Numbers Show

The interest component constitutes approximately 31% of the total claimed amount (₹56,53,413.23 out of ₹1,85,27,709). While the tribunal did not adjudicate the validity of the 24% per annum interest rate, it noted that the principal amount alone exceeds the statutory threshold for insolvency proceedings under Section 4 of the IBC. This highlights that the core legal barrier was the existence of a dispute, not the quantum of debt.

Legal Implications

The dismissal does not preclude Oswal Woollen Mills from pursuing remedies under the arbitration clause embedded in the ERPA or other civil forums. The NCLT emphasized that the IBC is not a substitute for recovery mechanisms in disputed commercial transactions.

The order clarifies that the finding of a pre-existing dispute does not validate either party’s contractual interpretation. Questions regarding the applicability of price revision clauses, invoicing requirements, and exact payable quantities remain open for determination by competent forums.

EKI Energy Services shareholders approved all three resolutions at its 15th Annual General Meeting (AGM) held on August 25, 2026. The company disclosed the final voting results on August 26, confirming that the adoption of FY26 financials, director re-appointment, and CFO appointment were all passed with requisite majorities.

The meeting commenced at 11:00 am via video conferencing from the company’s registered office in Indore. Manish Kumar Dabkara, Chairman and Managing Director, chaired the proceedings. Yash Joshi, Company Secretary and Compliance Officer, confirmed that the requisite quorum was present and that the meeting complied with Ministry of Corporate Affairs and SEBI regulations.

Voting Results Overview

As per the scrutinizer’s report by M/s Agrawal Mundra & Associates, a total of 18,296,463 votes were polled out of 27,686,750 outstanding shares as on the record date of August 18, 2026. This represents a participation rate of 66.08% of total shares held.

The promoter group held 18,241,845 shares and voted in favor of all resolutions. Public institutional investors held 17,672 shares, with 17,522 votes polled (99.15% participation), all in favor. Public non-institutional investors held 9,427,233 shares, with approximately 37,096 votes polled (0.39% participation).

Resolution Details

Members considered three items of business during the session:

• Adoption of the Audited Standalone and Consolidated Financial Statements for FY26, along with the reports of the Board of Directors and Auditors.
• Re-appointment of Ms. Priyanka Dabkara as a Director, who retires by rotation but is eligible for re-election.
• Appointment of Ms. Pooja Jorway, currently the Chief Financial Officer, as a Whole Time Director and CFO.

The first two items were ordinary resolutions, while the appointment of Ms. Jorway was classified as a special resolution.

Item 1: Adoption of Financial Statements

The ordinary resolution to adopt the FY26 financial statements received 18,284,953 votes in favor (99.94%) and 11,510 votes against (0.06%). All promoter and public institutional votes were cast in favor. Among public non-institutional voters, 68.97% voted in favor.

Item 2: Re-appointment of Priyanka Dabkara

The re-appointment of Ms. Priyanka Dabkara received 18,274,106 votes in favor (99.88%) and 22,357 votes against (0.12%). Promoter and public institutional shareholders voted unanimously in favor. Public non-institutional shareholders showed higher dissent here, with only 39.73% voting in favor compared to 60.27% against.

Item 3: Appointment of Pooja Jorway

The special resolution to appoint Ms. Pooja Jorway as Whole Time Director and CFO received 18,284,850 votes in favor (99.94%) and 11,603 votes against (0.06%). Similar to the financial statement adoption, promoter and institutional blocks supported the move entirely. Public non-institutional support stood at 68.71%.

Governance and Attendance

All Executive Directors, Non-Executive Directors, Independent Directors, and the CFO were present at the AGM. Statutory Auditors M/s Dassani & Associates LLP, along with Secretarial Auditor and Scrutinizer M/s Agrawal Mundra & Associates, also attended the proceedings.

Mr. Dabkara addressed members regarding the company’s performance, business outlook, and future strategy. Shareholders were given an opportunity to ask questions, which were addressed by the Chairman.

What the Numbers Show

While promoter and institutional support was unanimous across all resolutions, dissent was concentrated among public non-institutional shareholders, particularly regarding the re-appointment of Ms. Priyanka Dabkara. Over 60% of the votes cast by this segment opposed her re-appointment, contrasting sharply with the near-unanimous support from the promoter group (holding ~66% of equity) and institutional investors. Despite this dissent, the promoter block’s overwhelming majority ensured the resolution passed with 99.88% of total polled votes.

Voting Process

The company provided remote e-voting facilities for all three resolutions. Members who participated in the virtual meeting but had not voted remotely could also cast their votes electronically during the session.

The meeting concluded at 11:38 am with a vote of thanks to the Board and members.