NCLT Admits Insolvency Petition Against Belapur Toy Maker Over Rs 35.56 Crore Debt

On August 12, 2026, the National Company Law Tribunal (NCLT) admitted an insolvency petition against Belapur-based toy manufacturing firm CMP Euro Technoplast Private Limited. The tribunal passed the order following a petition filed by Italian company C.M.P Industrie S.R.L over a financial default of €43.5 lakh, equivalent to Rs 35.56 crore.

The petitioner had previously extended external commercial borrowings (ECB) to CMP Euro Technoplast. In its ruling, the tribunal held that the financial debt and default were clearly established and met the statutory threshold required to initiate the Corporate Insolvency Resolution Process (CIRP). The tribunal also noted that the company's manufacturing plant was currently closed and no longer generating revenue.

During the proceedings, an intervention application was filed by Chetan Doshi, a former director and 25.25 per cent shareholder in CMP Euro Technoplast. Tribunal filings showed that CMP Euro Technoplast had entered into a Master Agreement with Ferrero India Pvt Ltd in January 2019 for the supply of toys under an open-ended timeframe.

Doshi presented details showing that the company's production capacity had scaled up from 51 million units in 2015-16 to 148.4 million units in 2018-19, generating revenues of approximately Rs 37 crore in 2022-23. He stated that Ferrero extended its agreement in 2023 for 100 million units before issuing a termination notice in May 2023, which took effect on May 14, 2024. Doshi claimed he proposed pursuing alternative business opportunities, but Italian shareholders maintained the Indian plant was exclusively intended to serve Ferrero.

The NCLT observed that the intervener's submissions largely concerned shareholder conflicts, share valuation disputes, and pending matters before the Bombay High Court and NCLT. It ruled that internal shareholder disagreements did not establish that the debt was fictitious or that the insolvency petition was filed with malicious intent.

Based on loan agreements, Reserve Bank of India registrations, revised ECB terms, default notices, and information-utility records, the tribunal concluded the debt was genuine and in default. The company did not dispute the disbursement or default and agreed to undergo the resolution process.

Following the CIRP order, the NCLT appointed Sumedha Management Solutions Pvt Ltd as the insolvency resolution professional (IRP). Management control of the Belapur-based company will vest with the IRP during the proceedings.