NCLT admits Sahara group subsidiary into insolvency
MUMBAI : The National Company Law Tribunal has ordered insolvency proceedings against a Sahara Group subsidiary, deciding that a dispute raised by the company against its creditor was a means to avoid paying its dues. A Mumbai bench of the tribunal, led by Justice Kishore Vemulapalli, held that Sahara Q Shop Unique Products Range had defaulted in paying its dues to Sigma Supply Chain Solution. Sahara Q Shop had been launched as a consumer packaged goods and retail business in 2012.
“... we find that it is a fit case for initiation of (corporate insolvency resolution process) against the corporate debtor… We find that case deserves to be admitted under (the Insolvency and Bankruptcy Code)," NCLT said in its order. The tribunal has appointed Udaykumar Bhaskar Bhat as the interim resolution, or insolvency, professional to oversee day-to-day affairs at the Sahara group company.
Sigma Supply Chain had filed a section 9 application under IBC in December 2021 claiming that Sahara Q Shop owed it ₹4.75 crore, and seeking to initiate insolvency proceedings against the company. Section 9 of the Insolvency and Bankruptcy Code provides for an operational creditor to initiate insolvency proceedings in case of default by a corporate debtor. NCLT in its order stated that the Sahara group company had entered into service agreements with Sigma Supply Chain for handling, storage, maintenance, administration, distribution and arrangement of goods at the company warehouse across India.
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