The National Company Law Tribunal (NCLT) on January 11 ordered for the liquidation of Kwality Limited. The debt-ridden dairy and allied products firm was already under scanner for cheating a consortium of banks led by Bank of India.
The Company was admitted into insolvency in December 2018 on a petition moved by Punjab National Bank (PNB) and global private equity firm KKR. Haldiram Snacks and Pioneer securities jointly made an initially offer of Rs. 130 crore which was later revised to Rs. 145 crore of which majority of the funds in the resolution plan was allocated to the financial creditors. However, the Committee of Creditors (CoC) rejected the resolution plan submitted by Haldiram Snacks, the sole bidder resulting in the application for liquidation being moved.
Kwality Ltd. was incorporated in 1992 as Kwality Dairy (India) Ltd. The company was set up as a backward integration unit of Kwality Ice Creams India Ltd and was acquired by Dhingra Family in 2002 and is in the business of products such as milk products such as milk ghee, milk powders, lassi, chaach and flavoured milk. It owes over Rs.1900 crore to its lenders. The order was passed by Technical member Narendra Kumar Bhola and Judicial member CH. Mohd Sharief Tariq via video conferencing.Subscribe Taxscan AdFree to view the Judgment