JCT staff hail NCLT’s insolvency order, hope for its revival under new management

Workers at JCT Ltd, one of Punjab’s oldest textile manufacturers, have welcomed the National Company Law Tribunal’s (NCLT) decision to initiate the Corporate Insolvency Resolution Process (CIRP) against the debt-ridden company.

The ruling, issued by the Chandigarh bench of the Tribunal on Tuesday, marks a significant shift in the company’s management and raises hopes for long-awaited financial and operational stability.

The Tribunal’s order removes executive authority from the existing management, including Chairman and Managing Director Samir Thapar and Full-Time Director Mukulika Sinha. Control of the company has been handed over to an interim resolution professional (IRP), who will oversee daily operations and initiate steps toward financial revival under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.

In the wake of the decision, workers from both Phagwara and Chohal (Hoshiarpur) units gathered on Wednesday to express their approval of what they described as a “historic turning point.” For many employees, the order represents not only a change in leadership but also a long-awaited response to years of unpaid wages, overdue benefits, and uncertainty surrounding their future.

“This order is nothing less than historic for us,” said Suresh Kumar, an employee in the dyeing department at Phagwara. “Someone has finally heard the workers. We believe the new management will be fair and transparent,” he said.

Workers have accused the previous leadership of mismanagement and indifference, blaming them for the company’s deterioration despite employees’ sustained loyalty and effort. They also called for immediate attention to their pending dues and job security.

Ravinder Singh, who works in maintenance at the Chohal unit, said, “We’ve suffered for years under false promises. Now, with the court stepping in, I finally feel there’s hope we’ll be paid what we are owed.”

The CIRP process allows the IRP to take over all managerial functions and assess the company’s financial viability. The IRP is also empowered to invite resolution plans from potential investors, with the goal of either restructuring JCT’s debts or facilitating a sale to a new management group capable of restoring operations.

Several workers did not mince words in expressing their dissatisfaction with the outgoing leadership. Many accused the board of leading the company to financial ruin through alleged mismanagement, a lack of transparency, and failure to engage with the concerns of employees.