NCLAT stays insolvency proceedings against Chandigarh-based Ind Swift

Chandigarh-based pharma company Ind Swift Ltd got a major relief after the National Company Law Appellate Tribunal (NCLAT) stayed the NCLT order dated 12th September 2023 admitting the insolvency application against the company. The insolvency plea has been filed by Alcare Containers Co after Ind Swift defaulted on a payment of Rs 1.5 crore.

In an exchange filing on 15 September, Ind Swift said the Hon’ble Appellate Tribunal has vide its order dated today — 15th September 2023 — stayed the order dated 12th September 2023 of the Hon’ble NCLT, Chandigarh.

Brief of the case

The operational creditor — Alcare Containers Co – is engaged in the business of manufacturing/ supplying of aluminium tubes and based on the requirement of Ind Swift, the operational creditor supplied material to the corporate debtor at various times and raised invoices.

The business transactions were carried on since 2013 and the payments were made from time to time through cheques and RTGS. The payments became irregular in March-April 2014 when various cheques were dishonored. Even though payments were not made, the operational creditor kept supplying the goods and the corporate debtor kept issuing post-dated cheques. The corporate debtor made the last payment of Rs 10,000 on 23June 2015 through RTGS. The corporate debtor failed to make the payment for 11 invoices. On 30April 2016 cheque no. 290366 dated 24 April 2016 got dishonored. The petitioner filed the petition for winding up under Section 433 of the Companies Act,1956 at Hon’ble Punjab and Haryana High Court, Chandigarh on 06.07.2016. Thereafter, the matter was transferred and was taken up by the NCLT.

About Ind Swift

Established in 1986, Ind Swift is a pharmaceutical manufacturing and marketing company in India, based in Chandigarh.

Ind Swift has been ranked 35th in the Indian pharma industry and is the second largest among the drug manufacturers in India (north India). It has spread its network across 45 countries. It is an ISO 9001-2008, WHO GMP certified company. It is also listed on the Bombay Stock Exchange and National Stock Exchange. It has five plants in India which include multi-purpose, multi-location facilities spread across northern India.

The company has expertise in finished goods dosage, Active Pharmaceutical Ingredients (API’s) and herbal products. A talented team of research scientists, formulation experts, clinical development and regulatory affairs professionals support the company’s marketing efforts not only across the country but also around the globe. Ind-Swift pharmaceutical products are safe, effective and have consistent quality.

During the financial year 2022-23, Ind Swift earned total consolidated revenue of Rs 410.96 crore against revenue of Rs. 397.71 crore in the previous financial year, thus registering an increase of 3.33%. The company achieved an export turnover of Rs. 282.66 crores against Rs 293.19 crores in the previous financial year, resulting in a decrease of 3.59% in exports of the company. During the year the Company earned an EBIDTA of Rs. 51.13 crores as compared to Rs. 59.32 crores in the previous financial year. During the year the company incurred net losses of Rs. 34.54 crores against losses of Rs. 20.33 crores during the previous financial year.

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