Panshul Agro Food LLP Vs State Bank of India & Ors. (NCLAT New Delhi)
Summary: The National Company Law Appellate Tribunal, Principal Bench, New Delhi, partly allowed the appeal filed by Panshul Agro Food LLP against the order dated 29.04.2026 passed by the NCLT, Ahmedabad Bench, which had dismissed its application under Section 10 of the Insolvency and Bankruptcy Code, 2016 and imposed a cost of Rs. 10 lakhs.
The appellant, through its designated partner, had sought initiation of Corporate Insolvency Resolution Process, appointment of an Interim Resolution Professional and declaration of moratorium in respect of defaulted debt of Rs. 42,20,27,984.96/-. The appellant had availed credit facilities from multiple financial creditors and had also disclosed operational creditors. According to the record, default in repayment to State Bank of India occurred on 18.04.2025.
The appellant submitted that the Adjudicating Authority had erred in rejecting the Section 10 application merely because SARFAESI proceedings were pending before the Debts Recovery Tribunal. It relied upon Pondicherry Extraction Industries Pvt. Ltd. vs. Bank of Baroda, CA (AT) (Ins) No. 471 of 2020, contending that the Adjudicating Authority was required to examine debt and default on the material available on record. It also argued that the missing machinery could not be attributed to it because possession had already been taken by the respondent bank and that the application had been rejected without adequate consideration.
