# In the matter of Garodia Chemicals Limited

> NCLT judgment dated 2024-04-16. Citation: TCN-2024-NCLT-01723. The case involves a petition under Section 54C of the Insolvency & Bankruptcy Code, 2016, read…

- **Court:** NCLT
- **Order date:** 16 Apr 2024
- **Citation:** TCN-2024-NCLT-01723
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-division-bench-court-i-chenn/garodia-chemicals-limited-16aa0035

## Summary

### Background

The case involves a petition under Section 54C of the Insolvency & Bankruptcy Code, 2016, read with Rule 4 of the Insolvency & Bankruptcy (Pre-Packaged Insolvency Resolution Process) Rules, 2021, concerning Garodia Chemicals Limited. The Tribunal had previously rejected the petition due to concerns about circumventing SEBI's Takeover Regulations. However, the NCLAT allowed an appeal, setting aside the rejection order and stating that the refusal of admission was contrary to the scheme of the IBC. Consequently, the petition was revived and is being considered afresh.

## Facts

Garodia Chemicals Limited, a public listed company incorporated on 06.01.1993, engaged in manufacturing and dealing in dyes, chemicals, and byproducts, is undergoing a Pre-Packaged Insolvency Resolution Process (PPIRP). A Base Resolution Plan was submitted jointly by the Corporate Debtor and Mr. Ravindra Subhash Salunkhe. The total debt payable to Financial Creditors is Rs. 4,41,21,594 as of 21.08.2023. The company's assets and liabilities as of 31.03.2023 show total assets of Rs. 10,62,910 and total equity and liabilities of Rs. 10,62,910. The company is not generating revenue and is unable to repay its loans. The Resolution Plan involves paying the Operational Creditor in full (Rs. 1,33,000) within 30 days and settling Financial Creditors with a one-time payment of

…

## Issues and analysis

### Issue 1: Whether the application for the Pre-Packaged Insolvency Resolution Process of Garodia Chemicals …

**Ratio:** Section 54C of the Insolvency and Bankruptcy Code, 2016, outlines the conditions and

…

**Reasoning:** The Tribunal, upon reviewing the documents and materials presented by the Corporate

…

**Interpretation:** Section 54C requires the Corporate Debtor to fulfill certain conditions and

…

**Application:** In this case, the Tribunal found that Garodia Chemicals Limited had produced

…

## Parties

- **Judges:** V.G. B…; Prabhat…
- **Respondents:** Garodia Chemicals…

## Timeline

- **1993-01-06 — Incorporation of…**: Garodia Chemicals Limited…
- **2020-07-29 — UDYAM Registration…**: Corporate Debtor…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 54C — Application to initiate pre-packaged insolvency…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-54c)

---

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-16aa0035