Pashupati Dairies admitted into CIRP by NCLT Delhi

The National Company Law Tribunal (NCLT), New Delhi Bench (Court-VI), has admitted an insolvency petition against M/s Pashupati Dairies Private Limited, initiating the Corporate Insolvency Resolution Process (CIRP) on May 19, 2025. The petition, filed by Bank of India under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeks to recover a default amount of over Rs. 472 crore.

Bank of India, the financial creditor, stated that Pashupati Dairies Private Limited acted as a corporate guarantor for Kwality Limited (the Principal Borrower). Kwality Limited’s account was classified as a Non-Performing Asset (NPA) on August 31, 2018, and the guarantee provided by Pashupati Dairies was invoked on February 20, 2019, through a Section 13(2) SARFAESI Act, 2002 notice.

The NCLT noted that CIRP had already been initiated against the principal borrower, Kwality Limited, on December 11, 2018. Additionally, another corporate guarantor for the same debt, JTPL Pvt. Ltd., also entered CIRP on April 15, 2024.

Pashupati Dairies Private Limited, incorporated on December 30, 2003, with CIN: U15204DL2003PTC273781, raised objections regarding the maintainability of the petition on grounds of limitation and the ongoing CIRP against another guarantor. However, the NCLT, citing Supreme Court precedents, clarified that simultaneous proceedings against multiple guarantors for the same debt are maintainable. The Tribunal also determined that the petition was filed within the limitation period, acknowledging the corporate debtor’s admission of guarantee in its audited financial statements for FY 2022-23 and 2023-24.

Sandeep Goel, with Registration Number IBBI/IPA-003/IP-N00073/2017-18/10583, has been appointed as the Interim Resolution Professional (IRP) for Pashupati Dairies Private Limited. A moratorium has been declared in terms of Section 14 of the IBC, prohibiting the institution or continuation of suits, transfer of assets, and enforcement of security interests against the corporate debtor. Bank of India has been directed to deposit an initial sum of Rs. 2 Lakhs with the IRP to cover initial expenses.

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