NCLT Initiates Insolvency Proceedings Against Himalayan Mineral Waters

The National Company Law Tribunal (NCLT) has commenced insolvency proceedings against Himalayan Mineral Waters after Jammu & Kashmir Bank’s plea for default on a corporate guarantee for LeeL Electricals. Bhoopesh Gupta has been appointed as the interim resolution professional. NCLT found J&K Bank’s debt and default claims satisfactory.

The National Company Law Tribunal (NCLT) has initiated insolvency proceedings against Himalayan Mineral Waters in response to a financial default complaint by Jammu & Kashmir Bank. The tribunal, convinced by J&K Bank's claims of debt and default, has moved forward with the insolvency process.

Bhoopesh Gupta has been appointed as the interim resolution professional for the Corporate Insolvency Resolution Process (CIRP) of this Dehradun-based company. The Allahabad bench of NCLT, led by a two-member panel, found the bank's application under Section 7 of the Insolvency and Bankruptcy Code (IBC) well-grounded and worthy of admission.

The case traces back to a substantial financial dispute involving Rs 50 crore, with Himalayan Mineral Waters acting as a corporate guarantor for LeeL Electricals. Following multiple defaults and the inability of the borrower to secure payments, the tribunal decided to press ahead with insolvency measures, emphasizing clear evidence of financial default.