NCLAT Dismisses Insolvency Plea Against HUL: Legal Paths Ahead

The NCLAT rejected an insolvency plea against Hindustan Unilever Limited by an operational creditor, Lalithambica Enterprises. The tribunal upheld a prior ruling due to a pre-existing dispute and insufficient claim amount. However, the creditor can seek alternative legal remedies as per the law.

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea seeking the initiation of insolvency proceedings against Hindustan Unilever Limited (HUL). Filed by operational creditor K Lakshmi Narayana of Lalithambica Enterprises, the plea alleged default on payments.

The Mumbai bench of the National Company Law Tribunal (NCLT) had previously rejected this Section 9 IBC application on September 5, 2024. The NCLT found that the claims within the three-year limitation were below the required Rs 1 crore threshold.

Further, NCLAT observed a pre-existing dispute dating back to a legal notice issued on January 17, 2019, leading to the dismissal of the appeal. The creditor can explore other legal avenues under existing laws.

(With inputs from agencies.)