PepsiCo vs. SNJ Synthetics: Insolvency Dispute Delay Condoned

The NCLAT has condoned a delay in re-filing an appeal by SNJ Synthetics against PepsiCo India Holdings regarding an insolvency petition. NCLT had earlier dismissed SNJ's plea, as the principal amount was paid, only leaving disputed interest. SNJ continued its claim for unpaid interest against PepsiCo.

The National Company Law Appellate Tribunal (NCLAT) recently permitted a delay in re-filing an appeal by SNJ Synthetics, which contested an order against them involving PepsiCo India Holdings. SNJ challenged a previous decision by NCLT that rejected their insolvency plea.

Earlier, the National Company Law Tribunal (NCLT) in Chandigarh had dismissed SNJ's section 9 plea, noting PepsiCo paid the principal amount, disallowing the Corporate Insolvency Resolution Process (CIRP) based on Snj's claim for interest.

The tribunal found the principal had been settled, leaving only the disputed interest amount, which was below the legal threshold, rendering the petition inadmissible under insolvency code provisions.