NCLT’s admits insolvency proceedings against Himalayan Mineral Waters

Jammu And Kashmir Bank Vs Himalayan Mineral Waters Private Limited (NCLT Allahabad)

The case between Jammu and Kashmir Bank (hereafter referred to as the “Financial Creditor”) and Himalayan Mineral Waters Private Limited (referred to as the “Corporate Debtor”) before the National Company Law Tribunal (NCLT), Allahabad, revolves around the initiation of insolvency proceedings under Section 7 of the Insolvency and Bankruptcy Code, 2016 (IBC). This summary will delve into the key points and legal arguments presented by both parties, leading to the tribunal’s decision.

Background and Debt Claim:

• The Financial Creditor filed the application on 20th January 2022, claiming a total financial debt of Rs. 50,04,38,456 owed by the Corporate Debtor. This debt arose as the Corporate Debtor acted as a guarantor for credit facilities extended to Leel Electricals, which defaulted on its obligations.

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