Astron Paper & Board Mill Limited Commences Corporate Insolvency Resolution Process
Astron Paper & Board Mill Limited has commenced the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. This development followed an application filed by an operational creditor, leading the National Company Law Tribunal (NCLT), Ahmedabad, to admit the petition and direct the start of the resolution process.The insolvency proceedings were initiated when M/s. Empire Sony PTY Limited, an Australia-based operational creditor, filed an application before the Hon'ble National Company Law Tribunal, Ahmedabad Bench. The application, bearing Company Petition (IB) No. 316 (AHM) of 2025, concerned an alleged operational debt amounting to Rs. 1,77,99,024.64, which was equivalent to USD 2,14,446.08.
NCLT Orders Admission of CIRP
The Hon'ble NCLT, Ahmedabad (Court I), issued an order on May 11, 2026, admitting the petition. This order formally commenced the Corporate Insolvency Resolution Process against Astron Paper & Board Mill Limited.The key details of the NCLT order and the insolvency appointment are summarized below:
| Particulars | Details |
|---|---|
| Adjudicating Authority | NCLT, Ahmedabad, Court II |
| Case No. | CP. (IB)/316(AHM)2025 |
| Date of Admission Order | May 11, 2026 |
| Operational Creditor | M/s. Empire Sony PTY Limited, Australia |
| Corporate Debtor | Astron Paper & Board Mill Limited |
| IRP Appointed | Mr. Atul Jashwantrai Sheth |
| IRP Registration No. | IBBI/IPA001/IP-P02463/20212022/13854IRP |
| Moratorium Effective Date | May 11, 2026 |
Management and Legal Implications
The commencement of CIRP has immediate operational implications for the Company. Following the order, a moratorium was declared with effect from May 11, 2026. This moratorium prohibits the institution or continuation of suits or proceedings against the Company, the execution of any judgment or decree, and the transfer or encumbrance of any Company assets.Furthermore, the powers of the Company's Board of Directors stand suspended. The Interim Resolution Professional (IRP) is now tasked with managing the affairs of the Company as a going concern.
As of May 11, 2026, the CIRP is operational, and the IRP is expected to issue a public announcement and carry out subsequent proceedings as prescribed under the relevant codes.
ASTRON Stock Price Movement
Today, Astron Paper & Board Mill Limited shares edged higher, gaining 2.40% to settle at ₹4.26. The stock saw considerable activity throughout the session, trading a total of 25,775 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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