NCLT Allahabad Allows SBI’s Application For Withdrawal Of Section 7 Petition Against Bajaj Hindustan Sugar
Sachika Vij
2 Nov 2023 9:30 AM GMT
The National Company Law Tribunal (‘NCLT’) Allahabad Bench comprising of Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member) allowed the State Bank of India’s (‘SBI’) application for withdrawal of the Section 7 petition filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) against Bajaj Hindusthan Sugar (Corporate Debtor). The SBI...
The National Company Law Tribunal (‘NCLT’) Allahabad Bench comprising of Shri Praveen Gupta (Judicial Member) and Shri Ashish Verma (Technical Member) allowed the State Bank of India’s (‘SBI’) application for withdrawal of the Section 7 petition filed under the Insolvency and Bankruptcy Code, 2016 (‘IBC’) against Bajaj Hindusthan Sugar (Corporate Debtor).
The SBI had filed the application for withdrawal of the Section 7 petition under IBC as the outstanding amount as fallen due had been paid by Bajaj Hindusthan Sugar.
SBI submitted in the withdrawal application that the Corporate Debtor during the pendency of the main petition has deposited with SBI the overdue amount towards the Term Loan and OCD coupons and has also assured to pay the future overdue with interest as and when the same becomes due and payable.
The Tribunal allowed the withdrawal of the main petition by observing:
In view of the averments made in the application and the statement made by the Ld. Counsel representing the Financial Creditor and there being no objection of the Ld. Sr. Counsel for the Corporate Debtor to the said withdrawal of the main petition, the present application is allowed and the main petition is dismissed as withdrawn. However, all parties are left to their further rights and remedies in accordance with the law.
Bajaj Hindusthan Sugar had owed a debt of Rs. 4,771 Crores to banks and had availed of two debt-restructuring schemes. SBI was owed the maximum amount of dues of around Rs 1,192 Crores. The lenders had declared Bajaj Hindustan Sugar a non-performing asset by the lender banks before taking it to the NCLT.
Bajaj Hindusthan Sugar Ltd. is one of the largest sugar and ethanol producers in India and holds a significant position within the industry. It operates 14 sugar plants, all strategically situated in the state of Uttar Pradesh.
Case Title: State Bank of India vs. Bajaj Hindusthan Sugar Ltd.
Case No.: IA No.43/2023, IA No.307/2023 & IA No.517/2023 in CP (IB) No.79/ALD/2022
Counsel for SBI: Sh. Sandeep Arora, Advocate.
Counsel for the Corporate Debtor: Sh. Ramji Srinivasan, Sr. Advocate, Sh. Kartikeya Saran, Sh. Adarsh Bhushan, Sh. Sanjeev Singh, Advocates, and Sh. Nesar Ahmad, PCS
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