Mumbai, August 12, 2026: The National Company Law Tribunal (NCLT) has admitted the insolvency petition filed by Italian firm C.M.P Industrie S.R.L against Belapur-based CMP Euro Technoplast Private Limited, a toy manufacturing company, over a financial default of €43.5 lakh, equivalent to Rs 35.56 crore.
The order was passed by the NCLT after a petition was filed by CMP Industrie S.R.L., which had extended external commercial borrowings (ECB) of €43.5 lakh to CMP Euro Technoplast. The tribunal held that the financial debt and default had been established and crossed the statutory threshold for initiating insolvency proceedings.
The NCLT observed that the company’s plant was closed and it was not generating revenue, which was one of the circumstances supporting commencement of the Corporate Insolvency Resolution Process (CIRP).
Ferrero Agreement Cited
An intervention application in the case was filed by Chetan Doshi, a 25.25 per cent shareholder and former director of CMP Euro Technoplast. According to the material placed before the tribunal, CMP had entered into a Master Agreement with Ferrero India Pvt Ltd in January 2019 for the supply of toys, with the agreement stated to be for an unlimited period.
Doshi’s case was that the company had grown substantially on the back of its toy-manufacturing business, including its association with Ferrero. The intervention application stated that the company’s production capacity had risen from 51 million units in 2015-16 to 148.4 million units in 2018-19, while revenue reached about Rs 37 crore in 2022-23.
The shareholder further alleged that Ferrero had extended its contract with CMP for another year in 2023, involving 100 million pieces/units, contradicting, according to him, the contention that Ferrero wanted to deal only with another toy manufacturer, Dreamplast. The order records that Dreamplast was also manufacturing toys for Ferrero.
Shareholder Dispute Not Relevant
The intervention application also alleged that Ferrero subsequently terminated its agreement with CMP in May 2023, with the termination taking effect from May 14, 2024.
Doshi claimed that the company therefore had a year’s notice to seek alternative business and that he had proposed exploring other opportunities. However, according to the intervener’s submissions, the Italian shareholders maintained that the Indian set-up was exclusively intended to cater to Ferrero.
The tribunal noted that the intervention application substantially revolved around shareholder disputes, the valuation of Doshi’s shares, his proposed exit from the company and pending proceedings before the Bombay High Court and the NCLT.
It held that even assuming such disputes existed, they did not by themselves establish that the financial debt was fictitious or that the insolvency proceedings were maliciously instituted.
NCLT Orders CIRP
The NCLT also relied on loan agreements, RBI registrations, changes to the ECB terms, default notices and information-utility records to conclude that the debt was a genuine financial debt and had gone into default. The corporate debtor had not denied the disbursement or default and had expressed its willingness to undergo CIRP.
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The tribunal consequently ordered commencement of CIRP against CMP Euro Technoplast. Sumedha Management Solutions Pvt Ltd was appointed as the insolvency resolution professional, and the management of the company will vest in the IRP during the insolvency process.
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