NCLT approves Poly Medicure’s ₹33.15 crore resolution plan for Himalayan Mineral Waters

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Himalayan Mineral Waters

The National Company Law Tribunal (NCLT), Allahabad Bench, has approved the resolution plan submitted by Poly Medicure Limited for Himalayan Mineral Waters Private Limited, bringing the Corporate Insolvency Resolution Process (CIRP) against the corporate debtor to a close. The successful plan proposes a total resolution amount of ₹33.15 Crores to take over the company.

The resolution plan & distribution

The resolution plan submitted by Poly Medicure Limited, a listed entity with a strong net worth, was approved by the Committee of Creditors (CoC) with an overwhelming 98.76% vote. The following table details the distribution of the resolution amount:

CreditorsAdmitted
Claims (₹)
Amount Proposed
under Plan (₹)
Treatment
CIRP CostEstimated at 40,00,00040,00,000To be paid in full, in priority.
Unsecured Financial Creditors793,42,10,32432,75,00,000A payment of ₹32.75 Crores in full and final settlement of all dues.
Operational Creditors, Employees, Government DuesNilNilNo claims were received.
Total Resolution Amount33,15,00,000

The resolution plan involves an upfront cash payment, and Poly Medicure has already provided a performance bank guarantee of ₹4.97 Crores. A monitoring committee will supervise the implementation of the plan.


Background of the insolvency process

The corporate insolvency of Himalayan Mineral Waters was initiated on June 3, 2024, after an application filed by Jammu & Kashmir Bank Ltd. under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, was admitted by the NCLT.

The financial debt arose not from a direct loan, but from the corporate guarantee provided by Himalayan Mineral Waters for credit facilities availed by Leel Electricals Ltd., the principal borrower. After Leel Electricals defaulted on its loans and was subsequently admitted into liquidation, Jammu & Kashmir Bank invoked the corporate guarantee against Himalayan Mineral Waters, leading to the CIRP.

The total admitted claims from financial creditors against Himalayan Mineral Waters were a substantial ₹793.42 Crores, submitted by eight unsecured financial creditors, including State Bank of India, Canara Bank, and Bank of Baroda.

Himalayan Mineral Waters Private Limited is a company incorporated under the Companies Act and was historically engaged in the business of manufacturing beverages. According to the resolution professional’s findings, at the time of the CIRP, the company had no active business operations and was primarily engaged in leasing out its immovable assets to group companies.

Also See: Rakesh Shah of GSEC buys out Ushdev Engitech for Rs 95 crore


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