NCLT dismisses petition against Bajaj Hindustan Sugar after SBI files withdrawal plea

The National Company Law Tribunal (NCLT) has dismissed the petition against Bajaj Hindusthan Sugar after analysing submissions made by the State Bank of India (SBI) for withdrawal of the petition. The SBI filed the petition for withdrawal of the original petition as the outstanding amount had been paid by Bajaj Hindusthan Sugar, which is one of the largest sugar producers in the country.

"As per the previous order dated 13th October 2023, Ld. Counsel representing the Financial Creditor made statement that as per his instructions, the outstanding amount as fallen due has been paid by the Corporate Debtor, and therefore, he further stated that he would be moving an appropriate application for withdrawal of the present petition," NCLT order read.

Bajaj Hindusthan Sugar owed banks about Rs 4,771 crore and had availed of two debt-restructuring schemes. The maximum amount of dues was from SBI, around Rs 1,192 crore. The lenders had declared Bajaj Hindustan Sugar a non-performing asset before taking it to the tribunal.

"In view of the averments made in the application and the statement made by the Ld. Counsel representing the Financial Creditor and there being no objection of the Ld. Sr. Counsel for the Corporate Debtor to the said withdrawal of the main petition, the present application is allowed and the main petition is dismissed as withdrawn. However, all parties are left to their further rights and remedies in accordance with law," the order further read.

Shares of Bajaj Hindusthan Sugar were trading at Rs 23.99, up by 2 per cent at 1.15 PM.

In its Q1 results, Bajaj Hindusthan Sugar reported a 65 per cent year-on-year jump in its consolidated net loss. The company had stated that the loss of the company increased to Rs 74.3 crore from Rs 44.9 crore during the corresponding quarter last fiscal. The revenue of the company plunged to Rs 1,363 crore, 11 per cent down from Rs 1,537 crore.

Bajaj Hindusthan Sugar Ltd, which is a prominent sugar and ethanol manufacturer in India, holds a significant position within the industry. It is affiliated with the Bajaj Group, headed by Kushagra Bajaj. The company operates 14 sugar plants, all strategically situated in the state of Uttar Pradesh.

In terms of production capacity, these plants can crush 1,36,000 tonnes of sugarcane daily. Moreover, the company possesses a remarkable alcohol distillation capacity, and is capable of producing 800 kilolitres of alcohol per day.