# In the matter of Priya Food Products Ltd.

> NCLT judgment dated 2025-09-18. Citation: TCN-2025-NCLT-01378. Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy…

- **Court:** NCLT
- **Order date:** 18 Sept 2025
- **Citation:** TCN-2025-NCLT-01378
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclt-kolkata/priya-food-products-ltd-31b6b953

## Summary

### Background

Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Priya Food Products Limited, seeking initiation of Corporate Insolvency Resolution Process (CIRP) due to outstanding dues of Rs. 9,90,09,826.07/-. An Interlocutory Application (IA) was filed seeking substitution of the applicant's name from Aditya Birla Finance Limited to Aditya Birla Capital Limited due to amalgamation.

## Facts

Aditya Birla Finance Limited filed a petition under Section 7 of the Insolvency and Bankruptcy Code, 2016, against Priya Food Products Limited.

The Corporate Debtor defaulted on payments amounting to Rs. 9,90,09,826.07/- as of 31.08.2023.

The Financial Creditor sanctioned and disbursed a total loan facility aggregating to Rs. 14,04,53,278/-.

The Corporate Debtor's account was classified as a Non-Performing Asset (NPA) on 29.08.2023.

Aditya Birla Finance Limited amalgamated with Aditya Birla Capital Limited with effect from 01.04.2025.

An order was passed by the NCLT, Ahmedabad Bench, approving the scheme of amalgamation on 24th March, 2025.

The Adjudicating Authority proceeded ex parte against the Corporate Debtor due to their failure to appear.

…

## Issues and analysis

### Issue 1: Whether the application for substitution of the financial creditor's name from Aditya Birla Finance …

**Ratio:** The NCLT, Ahmedabad Bench, approved the scheme of amalgamation, vesting all rights of

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**Reasoning:** The amalgamation order transfers all rights and obligations of the amalgamating company

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**Interpretation:** The amalgamated company is entitled to continue proceedings initiated by the

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**Application:** The application for substitution was allowed, recognizing Aditya Birla Capital

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## Parties

- **Judges:** Labh S…; Rekha Kantilal…
- **Appellants:** ADITYA BIRLA…; ADITYA BIRLA…
- **Respondents:** Priya Food…
- **Other parties:** Mahesh Chan…
- **Advocates:** Shaunak…; Amit Kr…; +3 more

## Timeline

- **2023-08-31 — Date of D…**: The Corporate Debtor defaulted on…
- **2023-08-29 — Account Classified as…**: The Corporate Debtor's account was…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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