Paluck Technologies has five pending cheque-dishonour complaints

Paluck Technologies has five pending cheque-dishonour complaints alleging instruments worth ₹5.6355 crore in aggregate, led by Tata Capital Limited’s ₹5.2343 crore cheque claim. Paluck says Tata Capital’s outstanding dues have been fully repaid and that it is current on repayment obligations, while the criminal complaint remains pending.

Why does Paluck face five cheque-dishonour complaints?

Paluck faces five pending complaints because lenders and suppliers allege that cheques or an Electronic Clearing System payment were returned unpaid. The disclosed instruments total ₹5.6355 crore: Tata Capital’s ₹5.2343 crore cheque, Soni Tyre Service’s ₹24 lakh claim across two complaints, Faridabad Service Station’s ₹9.87 lakh and ₹6 lakh claims, and IDFC First Bank Limited’s ₹25,000 Electronic Clearing System, or ECS, payment claim.

The cases are allegations in pending proceedings rather than court findings. Tata Capital, Soni Tyre Service and Faridabad Service Station have brought complaints under Sections 138, 141 and 142 of the Negotiable Instruments Act, 1881, which cover dishonoured cheques and associated liability. IDFC First Bank’s complaint is under Section 25 of the Payments and Settlement Systems Act, 2007, read with Section 138 of the Negotiable Instruments Act.

The return remarks differ by instrument. Tata Capital says its cheque was returned with the remark “Payment Stopped by Drawer”, while the Soni Tyre Service and Faridabad Service Station complaints cite “Exceeds Arrangement”. IDFC First Bank says its ECS payment dated August 10, 2024 was returned for “Balance Insufficient”; each complaint remains pending at the court stage specified in Paluck’s disclosure.

What does Tata Capital’s ₹5.2343 crore complaint allege?

Tata Capital’s complaint is Paluck’s largest disclosed cheque-dishonour matter, involving a cheque dated May 27, 2025 for ₹5.2343 crore. The lender filed its complaint before the Chief Metropolitan Magistrate at Karkardooma Courts, New Delhi, after the cheque was presented for encashment and returned unpaid with the remark “Payment Stopped by Drawer”.

Tata Capital says it sent a legal notice on June 11, 2025 and that Paluck did not pay within the stipulated period. The matter was disclosed as pending, with October 31, 2026 listed as the next hearing date. Paluck states that, as of the Red Herring Prospectus date, the outstanding Tata Capital dues had been fully repaid and it was current on all repayment obligations.

The repayment statement and the litigation status address separate matters. Paluck’s statement reports that no Tata Capital balance remained outstanding as of the prospectus date, but the disclosure does not say that Tata Capital withdrew its complaint or that the court resolved it. Tata Capital’s ₹5.2343 crore instrument represents about 92.9% of the ₹5.6355 crore aggregate amount alleged across the five complaints.

How do the supplier and bank cases differ from Tata Capital’s case?

The supplier and bank cases concern smaller alleged payment amounts and different instruments, though all remain pending. Soni Tyre Service filed complaint numbers 81297/2023 and 98761/2023 before the Judicial Magistrate First Class, Gurugram, over seven dishonoured cheques issued against an alleged outstanding balance of ₹24 lakh for tyre supplies.

Soni Tyre Service says it supplied tyres worth ₹77.47 lakh, received ₹32.13 lakh through Real Time Gross Settlement, or RTGS, and ₹21.20 lakh in cash, leaving ₹24 lakh unpaid. It says Paluck subsequently paid ₹4 lakh after the seven cheques were returned for “Exceeds Arrangement”. The next hearing dates listed are August 26, 2026 for complaint 81297/2023 and September 17, 2026 for complaint 98761/2023.

Faridabad Service Station filed two complaints in 2025 before the Judicial Magistrate First Class, Faridabad. One concerns a ₹9.87 lakh cheque dated January 28, 2025, with a legal notice dated February 21, 2025; the other concerns three ₹2 lakh cheques dated February 22, March 22 and April 22, 2025, aggregating ₹6 lakh. Both matters were disclosed at the statement-of-accused stage, with September 3, 2026 as the next hearing date.

IDFC First Bank’s ₹25,000 complaint is the smallest of the five and concerns an ECS payment dated August 10, 2024. The bank filed the October 19, 2024 complaint before the Judicial Magistrate First Class, Dwarka, saying the payment was returned for “Balance Insufficient” and a legal notice was sent on August 27, 2024. The case was listed at the miscellaneous-cases or purpose stage, with September 14, 2026 as the next hearing date.

How are these cases treated under Paluck’s materiality policy?

Paluck discloses all criminal proceedings as material, even where their monetary amounts fall below its general litigation threshold of ₹25.41 lakh. The board adopted the materiality policy on September 18, 2025 and selected ₹25.41 lakh, equal to 5% of the average absolute profit or loss after tax for the preceding three annual restated financial periods, as its lowest applicable threshold.

The ₹25.41 lakh threshold was lower than 2% of turnover, at ₹2.0562 crore, and 2% of net worth, at ₹63.64 lakh. Tata Capital’s ₹5.2343 crore allegation exceeds the selected monetary threshold, while the ₹24 lakh Soni Tyre Service amount, the two Faridabad Service Station claims and the ₹25,000 IDFC First Bank claim do not. Their criminal-proceeding classification nonetheless results in disclosure under the policy.

Paluck also stated that neither it, its promoter nor its directors had been declared wilful defaulters by the Reserve Bank of India or a government authority as of the prospectus date. The company further disclosed no statutory or regulatory actions against it and no disciplinary action by the Securities and Exchange Board of India or stock exchanges against Paluck, its promoter or directors that could materially affect its business or financial position.

How do the alleged claims compare with Paluck’s reported obligations?

The ₹5.6355 crore aggregate alleged amount compares with Paluck’s pre-issue total debt of ₹13.1706 crore as of February 28, 2026. That debt comprised ₹3.8684 crore of long-term borrowings and ₹9.3022 crore of short-term borrowings, while shareholders’ funds were ₹45.6558 crore and the reported total debt-to-equity ratio was 0.29.

Paluck’s short-term borrowings included working-capital loans, commercial paper and short-term loans. The company reported net cash used in financing activities of ₹10.7267 crore in fiscal 2025, compared with ₹12.8005 crore used in fiscal 2024; it attributed the fiscal 2024 outflow to repayment of loans and borrowings and finance charges.

As of February 28, 2026, Paluck reported ₹2.3114 crore of total outstanding creditor dues across 31 creditors. This included ₹1.0554 crore due to one other creditor and ₹1.256 crore due to 30 other-than-material creditors. Its policy defined a material creditor as one owed at least ₹23.14 lakh, or 10% of restated consolidated trade payables for the eleven months ended February 28, 2026, and Paluck said it had no material creditors other than those already disclosed in the prospectus.

Conclusion

Paluck’s litigation disclosure records five pending cheque-dishonour complaints spanning a lender, two operating suppliers and a bank, with Tata Capital accounting for ₹5.2343 crore of the ₹5.6355 crore aggregate alleged amount. Paluck’s reported full repayment of Tata Capital’s dues changes the stated balance with that lender, but does not by itself resolve the pending criminal complaint or determine the outcomes of the other four matters.

The disclosed court dates provide the next identifiable updates: Soni Tyre Service’s hearings are scheduled for August 26 and September 17, 2026, the Faridabad Service Station matters for September 3, 2026, IDFC First Bank’s case for September 14, 2026, and Tata Capital’s case for October 31, 2026. Readers can also watch whether Paluck continues to report that it is current on repayment obligations and whether any pending complaint is settled, withdrawn or adjudicated in later disclosures.