NCLT Orders Insolvency Proceedings Against Simbhaoli Sugars

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Simbhaoli Sugars Ltd. The petition, filed in 2018 by Oriental Bank of Commerce, now part of Punjab National Bank, sought Corporate Insolvency Resolution Process. With NCLT's decision, the company's board is suspended, and Anurag Goel is appointed as interim resolution professional.

The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency resolution proceedings against Simbhaoli Sugars Ltd. The petition for insolvency was filed in September 2018 by the erstwhile Oriental Bank of Commerce, now merged with Punjab National Bank.

The bank sought the initiation of the Corporate Insolvency Resolution Process (CIRP) under Section 7 of the Insolvency and Bankruptcy Code. The Allahabad Bench of NCLT admitted the petition on July 11, 2024, as disclosed by Simbhaoli Sugars in a stock exchange filing on Friday.

NCLT has appointed Anurag Goel as the interim resolution professional, which results in the suspension of the company's board. The default amount cited in the application was over Rs 130 crore as of November 22, 2017. Simbhaoli Sugars, a prominent sugar company, operates in Uttar Pradesh and markets its product under the brand 'Trust'. Following the news, the company's shares fell 2.46% to Rs 32.58 on the BSE.

(With inputs from agencies.)