SBI initiates insolvency proceedings against corporate guarantors of Mastana Foods
The State Bank of India (SBI) has filed an individual insolvency petition at the National Company Law Tribunal (NCLT) against corporate guarantors Krishan Mohan Mehndiratta, Atul Khurana and Radha Krishan Mehndiratta, all of whom are directors Mastana Foods Pvt Ltd.
The petition is up for hearing at the principal bench of the National Company Law Tribunal in New Delhi on 5 July 2021.
The petition has been filed under Section 95 of Insolvency and Bankruptcy Code (IBC). Under this section, a creditor may apply either by himself, or jointly with other creditors, or through a resolution professional to the Adjudicating Authority for initiating an insolvency resolution process against any one or more partners of the firm.
The State Bank of India has already filed an insolvency petition against the Mastana Foods for defaulting on a payment of Rs 201 crore (Rs 166 crore in principal and Rs 35 crore in interest as on 28 June 2017).
The insolvency application was admitted by NCLT on 18 September 2019. The insolvency process is still underway. As on 11 May 2021, total creditors claim admitted by the resolution professional was Rs 438 crore – Rs 208 crore by financial creditors and Rs 230 crore by operational creditors.
Mastana Foods Private Limited is a private incorporated on 3 March 1999. It is classified as non-government company and is registered at Registrar of Companies, Delhi. Its authorized share capital is Rs 550,000,000 and its paid-up capital is Rs 541,482,110. It is involved in manufacture of grain mill products, starches and starch products, and prepared animal feeds.
