A cancelled 2011 contract for supplying flavoured milk to 1,500 colleges in Mumbai and frequent drought in Maharashtra has come to hang-out a 53-year-old co-operative dairy, Warana Dairy and Agro Industries Ltd, that’s standing on the brink of chapter, based on filings of the corporate within the National Company Law Tribunal (NCLT).
Punjab National Bank (International) Ltd has taken Warana Dairy, which provides milk and milk merchandise to Maharashtra and likewise exports it to some nations, to the National Company Law Tribunal (NCLT) over a default of Rs 40 crore mortgage that was due for compensation in March 2020. The NCLT on September 16 handed an order admitting PNB International’s plea to provoke insolvency proceedings towards Warana Dairy. The tribunal additionally appointed Rakesh Bothra because the interim decision skilled (IRP) within the case. The case will now be heard by the NCLT on November 11.
According to the plea of PNB International, Warana has defaulted on a $5 million mortgage given to the dairy agency in 2013. The financial institution has claimed that as early as 2015, the account of Warana Diary turned a non-performing asset (NPA). In October 2018, the financial institution recalled its mortgage to Warana attributable to non-payment of the excellent mortgage. Subsequently, in January 2019, the dairy agency approached PNB International with a one-time settlement supply of Rs 10 crore which was rejected by the financial institution.
Now the diary agency has claimed that the financial institution had sanctioned and disbursed solely Rs 27 crore in 2013 and the corporate has already paid about Rs 10.39 crore again. The firm has stated an “irregular cash flow”, “drought ” in Maharashtra and “changes” within the charges of milk and milk merchandise by the state authorities has affected its manufacturing of milk resulting in a monetary crunch on the firm. The dairy firm additionally stated it was “facing severe liquidity crunch due to change in the government policy and cancellation of contract of supply of 2 Lakh packages of milk to 1500 schools in Mumbai”.
Now the NCLT has directed Warana to not alienate or promote any of its belongings. It additionally stated the provision of important items or companies to Warana Dairy is not going to be terminated or suspended or interrupted through the decision course of initiated below the Insolvency and Bankruptcy Code (IBC).
