# In the matter of Garodia Chemicals Limited

> NCLT judgment dated 2023-11-08. Citation: TCN-2023-NCLT-00838. The case pertains to a Company Petition filed under Section 54(C) of the Insolvency &…

- **Court:** NCLT
- **Order date:** 8 Nov 2023
- **Citation:** TCN-2023-NCLT-00838
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/garodia-chemicals-limited-1584ce40

## Summary

### Background

The case pertains to a Company Petition filed under Section 54(C) of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Pre-Packaged Insolvency Resolution Process) Rules, 2021, seeking initiation of Pre-Packed Insolvency Resolution Process (PPIRP) for Garodia Chemicals Limited. The Corporate Debtor is a public, listed company incorporated on 06.01.1993, engaged in manufacturing and dealing in dyes, chemicals, and byproducts. The total debt payable to Financial Creditors is Rs. 4,41,21,594 as of 21.08.2023. The Base Resolution Plan was submitted jointly by the Corporate Debtor and Mr. Ravindra Subhash Salunkhe.

## Facts

Garodia Chemicals Limited, a public listed company incorporated on 06.01.1993, filed a petition under Section 54(C) of the IBC seeking initiation of PPIRP. As of 21.08.2023, the Corporate Debtor owed Rs. 4,41,21,594 to its Financial Creditors. A Base Resolution Plan was submitted jointly by the Corporate Debtor and Mr. Ravindra Subhash Salunkhe. The financial statements revealed nil revenue for the financial years ending 31st March 2021, 2022, and 2023. The proposed resolution plan contemplated a 100% write-off of promoter shareholding and 12/13 of public shareholding, seeking exemptions from SEBI Takeover Regulations. M/s WZ Enterprises Private Limited made payments towards listing fees and NSDL charges shortly before filing the application. The application was filed

…

## Issues and analysis

### Issue 1: Whether the present application is intended towards resolution of the Corporate Debtor or is an …

**Ratio:** The legislative intent behind the introduction of PPIRP in the Code was to provide an

…

**Reasoning:** The NCLT reasoned that the payments towards listing fees and NSDL charges made by M/s WZ

…

**Interpretation:** The NCLT interpreted the intent of the PPIRP framework as being designed to

…

**Application:** The NCLT applied the ratio to the facts by highlighting that the actions of the

…

## Parties

- **Judges:** SH. Justice…; Prabhat…
- **Respondents:** Garodia Chemicals…

## Timeline

- **1993-01-06 — Incorporation of…**: Garodia Chemicals Limited was…
- **2021-09-17 — Special Resolution for…**: A copy of the special resolution by the Members of the Corporate Debtor to initiate the…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54A(2) — Corporate debtors eligible for pre-packaged…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54a)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/garodia-chemicals-limited-1584ce40