NCLT Approves Insolvency Resolution Process for Simbhaoli Sugar
The Allahabad Bench of the National Company Law Tribunal (NCLT) has approved the initiation of the corporate insolvency resolution process against Simbhaoli Sugar, a sugar mill based in Hapur, Uttar Pradesh. This decision comes after the company defaulted on a payment of Rs 130 crore to Oriental Bank of Commerce, now amalgamated with Punjab National Bank.
Anurag Goel has been appointed as the interim resolution professional (IRP) by the NCLT. Following the order, the powers of the Board of Directors of Simbhaoli Sugar will be suspended and vested with the IRP.
The NCLT has declared a moratorium under section 14 of the Insolvency and Bankruptcy Code, prohibiting the institution of suits, transferring of assets, enforcement of security interests, and recovery of property by the corporate debtor. Essential goods or services supplied to the company will not be terminated during this period.
Simbhaoli Sugar, established in 1933 by Sardar Raghbir Singh Sandhanwalia, has grown into a diversified Agri-Business and FMCG company with leading consumer brands. Despite its expansion into new categories and strong domestic and international presence, the company posted a revenue of Rs 1363 crore in 2023-24 with a net loss of around Rs 12 crore. It owes over Rs 1,300 crore to various lenders.
This development highlights the financial challenges faced by Simbhaoli Sugar and the steps being taken to address them through the insolvency resolution process. Stay tuned for further updates on this story.