NCLT says Government Companies Are Not Immune from CIRP

NCLT Bengaluru admitted a Section 9 petition against Karnataka Food and Civil Supplies Corporation Limited, rejecting its defence that its public functions insulated it from insolvency proceedings. The Tribunal also held that alleged procurement irregularities under the Karnataka Transparency in Public Procurements Act did not constitute a pre-existing dispute with the supplier. The admission order was, however, kept in abeyance until 31 October 2026 to enable the parties to resolve the matter.