Case Details
Case Name: Punjab National Bank vs. Basukinath Food Processors Limited
Authority: National Company Law Tribunal, Kolkata Bench, Court-II
Case Number: I.A. (IB) No. 208/KB/2026 in C.P.(IB) No. 1674/(KB)/2019
Order Date: 22 May 2026
CIRP Commencement Date: 11 January 2022
Period of Dispute: Litigation and resolution process from March 2022 to May 2026
Parties Involved
Financial Creditor: Punjab National Bank
Corporate Debtor: Basukinath Food Processors Limited
Resolution Professional: Rajesh Lihala
Key Entities: West Bengal Industrial Development Corporation (WBIDC), Kedarnath Mining Pvt. Ltd. (Resolution Applicant), Orissa Metalliks Pvt. Ltd. (Resolution Applicant), Canara Bank (CoC member)
Issues / Allegations / Violations
- WBIDC maintained physical possession of Corporate Debtor's plant/factory since before CIRP commencement, preventing asset inspection and resolution progress
- RP filed I.A. No. 204/KB/2022 on 1 March 2022 to take possession from WBIDC
- WBIDC filed I.A. No. 1144/KB/2022 on 29 September 2022 seeking inclusion in CoC, contesting RP's authority to keep its claim in abeyance
- WBIDC later raised security expense claims totaling ₹99,14,14,468.22 for period from 29 September 2016 to 6 August 2025, including specific claim of ₹69,86,810
- Deadlock in CoC negotiations due to WBIDC's insistence on resolving security expense claims before proceeding with resolution plans
Findings & Observations
- NCLT previously allowed exclusion of litigation period from 1 March 2022 to 24 April 2024 (order dated 24 April 2024)
- NCLAT dismissed WBIDC's appeal (Company Appeal (AT) (INS) No. 519 of 2024) on 6 May 2025, upholding NCLT's order and confirming WBIDC as mere custodian, not owner
- Additional exclusion granted from 25 April 2024 to 6 May 2025 for NCLAT appeal period
- Tribunal noted that delay occurred due to Resolution Plans not being deliberated and negotiations being deferred due to unresolved WBIDC claims
- Tribunal observed reasonable likelihood of achieving effective resolution of Corporate Debtor
Penalties / Settlements / Directions
- No monetary penalties imposed in this order
- CIRP Extension Granted: CIRP period extended from 11 February 2026 until date of order (22 May 2026)
- Additional Extension: 30 days extension granted from date of order to facilitate successful resolution
- Direction: RP to complete resolution process within the extended timeframe
Corrective Actions & Future Obligations
- RP must complete evaluation of two resolution plans from Kedarnath Mining Pvt. Ltd. (submitted 1 August 2022, score 7.50 H1) and Orissa Metalliks Pvt. Ltd. (submitted 5 July 2024, score 6 H2)
- CoC must resolve WBIDC's security expense claim issue, which requires supporting documents and invoices
- PRAs must provide required clarifications and documents, with Orissa Metalliks given until 10 February 2026 to enhance offer value
- CoC members need to obtain internal approvals for voting process
Final Ruling & Enforcement
- Interlocutory Application I.A. (IB) No. 208/KB/2026 allowed
- CIRP period extended effectively by 30 days from 22 May 2026
- Application disposed of with directions for completion of resolution process
- Certified copy of order to be issued upon compliance with formalities