In the matter of Garodia Chemicals Limited [Cp(Ibpp) No. 02 of 2023]

NCLT8 Nov 2023CP(IBPP) No. 02 of 2023

Case brief

AI extract

What is this about?

The Tribunal examined an application for Pre-Packaged Insolvency Resolution Process under Section 54(C) of the IBC. It held that the attempt was a guise to circumvent SEBI takeover regulations regarding a listed entity and rejected the petition.

What did the court decide?

Petition CP(IBPP) No. 02 of 2023 is rejected.

What the court decided

AI extract

In the matter of Garodia Chemicals Limited… — Securities and Capital Markets | NCLT (2023)

In the matter of Garodia Chemicals Limited [Cp(Ibpp) No. 02 of 2023]

NCLT8 Nov 2023CP(IBPP) No. 02 of 2023

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Case brief

AI extract

What is this about?

What did the court decide?

Petition CP(IBPP) No. 02 of 2023 is rejected.

What the court decided

AI extract

¶26

	List of Financial C	reditors (Unrelated)
I	II	III	IV
Sr. No.	Name of the Creditor	Amount of Claim (INR)	% of Claim
1	M/s. WZ Enterprises Private Limited List of Financial	9,00,528 Creditors (Related)	2.04
I	II	III	IV
Sr. No.	Name of the Creditor	Amount of Claim (INR)	% of Claim
1	Mr. Mahesh Gordhandas Garodia	4,10,40,598	93.02
2	Mr. Nishant M. Garodia	19,25,271	4.36
3	M/s Garodia Sons Private Limited	1,22,197	0.28

¶30

	List of Operational C	reditors (Unrelate	d)
I	II	III	IV
Sr.	Name of the	Amount of	% of Claim
No.	Creditor	Claim (INR)
1	M/s. Makarand M. Joshi & Co.	1,33,000	0.30
	TOTAL	4,41,21,594	100

¶33

Sr.	Particulars	Value
No.		(INR)
ASS NON	ETS -CURRENT ASSETS
1.	Other Non-Current Assets	6,15,000
	SUB TOTAL	6,15,000
CUR	RENT ASSETS
2.	Cash and Cash Equivalent	23,401
3.	Other Current Assets	4,24,509
	SUB TOTAL	4,47,910
	TOTAL ASSETS	10,62,910
EQU	ITY AND LIABILITIES
4.	Equity Share Capital	7,20,02,000
5.	Other Equity	(11,55,85,744)
	SUB TOTAL	(4,35,83,744)
NON	-CURRENT LIABILITIES
6.	Non-Current Borrowings	4,34,08,552
	SUB TOTAL	4,34,08,552

CURRENT LIABILITIES
7. Trade Payables	7,28,720
8. Provisions	34,000
9. Other Current Liabilities	4,75,382
SUB TOTAL	12,38,102
TOTAL EQUITY AND LIABILITIES	10,62,910

¶44

S. No.	Particulars	Key terms/Amounts
1	Amount of payment to Creditors	The sole Operational Creditor of the Corporate Debtor, namely M/s Makarand M. Joshi & Co. shall be paid IN FULL amounting to Rs. 1,33,000/- (Rupees One Lakhs Thirty Thousand Only) within 30 days from Effective date and shall be paid in priority over Financial Creditors.
		The Financial Creditors of the Company would be paid a total amount of Rs. 34,00,528/- (Rupees Thirty-Four Lakh Five Hundred Twenty-Eight Only) towards their entire outstanding (accrued orto be accrued) asfull

¶49

		and final	settlement.
		Sr . N o.	Name of Financial Creditors	Full and final settlement amount
		1	Mr. Mahesh Gordhandas Garodia	12,50,000 /-
		2	Mr. Nishant M. Garodia	12,50,000 /-
		3	M/s Garodia Sons Pvt. Ltd.	Nil
		4	M/s WZ Enterprises Private Limited	9,00,528/ -
		The abov oftheEff	Total e payment shall be p ectiveDate.	34,00,528 /- aid within 30 days
2	Balance repayment obligation to creditors (other than 1 above)	Operatio pay-out. All the d settled w Point1o	nal Creditor is being ues of the Financial ith one-time payme fthe table.	repaid with 100% Creditors are being nt as provided in
3	Proposed instruments for repayment	Since, th securities	e amount is paid in which are being iss	cash, there are no ued for repayment
4	Interest rate/coupon and frequency ofpayment	Since no interest w	securities are being i illbe paid to the cre	ssued therefore no ditors
5	Repayment schedule	Since no specific r utmost c provided	securities are being i epayment schedule larity, the creditor in Point 1 of the tab	ssued therefore no is provided. For s are being paid le.
6	Security	NotAppl	icable
7	Conversion terms for quasi equityinstrumentsifany	Not Appl	icable
8	Terms of equity being offered to lenders, if any	Not Appl	icable
9	Amount of fresh equity proposed to be infused	The Res 50,00,000 subscripti each.	olution Applicant p (Rupees Fifty La on of 50,00,000 Equ	lans to infuse Rs. cs only) towards ity Shares of Re. 1

¶54

10	Corporate Guarantee or additional collateral/security being offered by the Resolution Applicant pursuant to section 54K (13) of the Code.	The Resolution Applicant has deposited title documents of Land Admeasuring 0.79 Sq Mtrs situated at Survey No.213/1, Sasane, Murbad, District Thane with the Resolution Professional. The Market value of the property is Rs. Rs. 61,06,100/- as arrived on the basis of valuation report dated 7^th February 2023.
11	Details of management personnel of the Resolution Applicant with a brief description of experience in the relevant industry/business	As detailed Below in point V
12	Details of prior experience of the Resolution Applicant in managing similar business	As detailed Below in point V
14	Credit Rating of the Resolution Applicant	Since the Resolution Applicant is an individual, CIBIL Report representing credit history and records of running credit transaction of Resolution Applicant is appended as Exhibit C
15	Brief of proposed business plan for the Company:	At the outset, with payment of the Operational Creditor of the Company in FULL and with full and final settlement of the Financial Creditors of the Company, the Resolution Applicant will first achieve a DEBT FREE status for the Company. Thereafter the Resolution applicant shall propose to carry out the list of business activities as set out in point VI. Financial projections of the proposed activities are appendedinExhibit D

¶56

Description of Source of Funds
Pre- packaged Insolvency Resolution Process Costs
ByResolution Applicant
Recovery to Financial Creditors and claims being paid to operational creditors
By Capital infusion by the Resolution applicant

In the matter of Garodia Chemicals Limited [Cp(Ibpp) No. 02 of 2023]

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In the matter of Garodia Chemicals Limited [Cp(Ibpp) No. 02 of 2023]

Case brief

What is this about?

What did the court decide?

What the court decided

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

All orders in this case

Similar cases

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