The National Company Law Appellate Tribunal (NCLAT) has recently upheld the initiation of corporate insolvency proceedings against butter and ghee manufacturer and trader Jhandewalas Foods Limited.
It held that the company’s defence of a pre-existing dispute over unpaid dues was not supported by credible evidence and could not prevent the insolvency process.
A bench of Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra observed, “In our considered view, we have no good grounds to disagree with the Adjudicating Authority that the alleged disputes claimed by the Corporate Debtor are feeble disputes not supported by credible evidence. In sum, no real pre-existing dispute is discernible.”
The appeal was filed by…