Kolkata-based liquor seller RG Shaw & Sons faces liquidation
, ET Bureau|
Dec 08, 2017, 07.10 PM IST
RG Shaw & Sons Pvt Ltd, a 79-year old seller of liquor, spirits and wine in Kolkata, is heading for liquidation as the promoters did not submit resolution plans while it defaulted working capital loans from State Bank of India and other unsecured financial creditors, two people familiar with the development said.
The company defaulted on a loan of about Rs 80 crore, where SBI has 95% exposure.
"The promoters and corporate guarantors have failed to come up with a resolution plan within the extended deadline. There was no other resolution applicant. Hence liquidation is now inevitable," resolution professional Sumit Binani told ET.
SBI declined to comment on the matter.
Binani submitted the progress report on debt resolution on Thursday to National Company Law Tribunal's (NCLT's) Kolkata bench. The extended deadline for this case expired on December 7. The company got two months extension after the initial 180 days of resolution exercise.
Sarbjit Singh Johal and Maninder Singh Johal were partners in the company which had three prominent stores in the heart of the city.
"Since the promoters did not cooperate and are guilty of some offences under the insolvency and bankruptcy code, I have also filed a suitable application under Section 236 to IBBI for seeking necessary direction," said Binani.
The Johal Group also had wholesale and bottling units and was a "principal distributor" of Diageo and United Spirits, according to earlier media reports.
The company was referred to NCLT by Navplast Traders and others in April for failing to pay its dues. SBI offered working capital to it, according to people in the know.
"It is a policy of the bank not to comment on Individual accounts and its treatment," a senior corporate communication official at SBI said.
About 14-15 cases under the Insolvency and Bankruptcy Code have been referred for liquidation, with NCLT benches giving their approvals on mothballing the defaulting companies.
Until December 4, a total of 85 companies completed six months in the insolvency resolution process, show data compiled by Corporate Professionals, a Delhi-based firm that employs insolvency professionals. In contrast, civil cases in India run for years, if not decades.
The company defaulted on a loan of about Rs 80 crore, where SBI has 95% exposure.
"The promoters and corporate guarantors have failed to come up with a resolution plan within the extended deadline. There was no other resolution applicant. Hence liquidation is now inevitable," resolution professional Sumit Binani told ET.
SBI declined to comment on the matter.
Binani submitted the progress report on debt resolution on Thursday to National Company Law Tribunal's (NCLT's) Kolkata bench. The extended deadline for this case expired on December 7. The company got two months extension after the initial 180 days of resolution exercise.
Sarbjit Singh Johal and Maninder Singh Johal were partners in the company which had three prominent stores in the heart of the city.
"Since the promoters did not cooperate and are guilty of some offences under the insolvency and bankruptcy code, I have also filed a suitable application under Section 236 to IBBI for seeking necessary direction," said Binani.
The Johal Group also had wholesale and bottling units and was a "principal distributor" of Diageo and United Spirits, according to earlier media reports.
The company was referred to NCLT by Navplast Traders and others in April for failing to pay its dues. SBI offered working capital to it, according to people in the know.
"It is a policy of the bank not to comment on Individual accounts and its treatment," a senior corporate communication official at SBI said.
About 14-15 cases under the Insolvency and Bankruptcy Code have been referred for liquidation, with NCLT benches giving their approvals on mothballing the defaulting companies.
Until December 4, a total of 85 companies completed six months in the insolvency resolution process, show data compiled by Corporate Professionals, a Delhi-based firm that employs insolvency professionals. In contrast, civil cases in India run for years, if not decades.
