Basandrai Bottlers Private Limited Vs Through Authorised Signatory (NCLT Chandigarh)
The National Company Law Tribunal (NCLT), Chandigarh Bench, admitted a petition filed under Section 10 of the Insolvency and Bankruptcy Code, 2016 seeking initiation of the Corporate Insolvency Resolution Process (CIRP) against a corporate debtor engaged in the brewery and Indian Made Foreign Liquor (IMFL) business. The petition was filed by the corporate debtor through its authorised signatory on account of an admitted financial default amounting to ₹1,80,31,404.
The corporate debtor is a private limited company incorporated on 2 December 1992 under the Companies Act, 1956, and is engaged in the business of brewery and IMFL manufacturing. Its registered office is located in Manimajra, Chandigarh. The company had availed financial assistance from The Himachal Pradesh State Co-operative Bank Ltd., Nerchowk, in November 2009. The assistance consisted of a term loan of ₹271.42 lakhs and a working capital facility of ₹1 crore pursuant to a sanction letter dated 25 November 2009.
The term loan was repaid and closed on 26 October 2018, while the working capital facility continued and was renewed. However, due to adverse market conditions and financial stress, the corporate debtor was unable to regularise the working capital account, leading to mounting arrears. As a result, the loan account was classified as a Non-Performing Asset (NPA) on 31 August 2019.
