 "NCLT dismisses petition against Bajaj Hindustan after withdrawal by SBI")
The National Company Law Tribunal (NCLT) is learnt to have dismissed the petition against one of the country’s largest sugar producers, Bajaj Hindusthan Sugar, after considering submissions made by the State Bank of India (SBI) for withdrawal of the petition.
A copy of the order hasn’t been uploaded yet.
The SBI filed the petition for withdrawal of the original petition as the outstanding amount had been paid by Bajaj Hindusthan Sugar.
Sources said if the NCLT had indeed dismissed the petition, then it marks the end of the long battle wherein financial creditors took the company to NCLT for non-payment of their dues.
The company owed banks about Rs 4,771 crore and had availed itself of two debt-restructuring schemes, leading to steep haircuts taken by the lenders. The maximum amount of dues was from SBI, around Rs 1,192 crore.
The lenders had declared Bajaj Hindustan Sugars a non-performing asset before taking it to the tribunal.
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This plunged the sugar industry into a turmoil as Bajaj is one of the country’s largest sugar firm. It operated more than 14 sugar factories, mostly in Uttar Pradesh.
Industry sources said the fate of almost 600,000 sugarcane farmers in UP depended directly on the health of sugar factories owned by Bajaj.