NCLT directs initiation of insolvency proceedings against Syska LED Lights

The National Company Law Tribunal (NCLT) has has directed to initiate insolvency proceedings against Syska LED Lights, admitting the plea filed by its operational creditor -- Sunstar Industries.

Syska LED Lights, part of Pune-based SSK Group, operates in segments such as LED lights, personal care appliances, mobile accessories, home appliances, and smart watches.

The Mumbai bench of NCLT admitted the plea filed by Sunstar Industries, claiming total dues of Rs 7.70 crore and has appointed Debashis Nanda as the interim resolution professional suspending the board of Syska LED Lights, as per the provisions of the Insolvency & Bankruptcy Code (IBC).

It rejected Syska LED Lights' claims of a pre-existing dispute and said the e-mail exchanged between parties establishes its liability towards its operational creditor.

"We are of the considered view that the applicant has been able to establish the existence of operational debt and its default on the part of the corporate debtor and ...