Details of Legal Proceedings
Opposing Party: UC Inclusive Credit Private Limited (UC Credit)
Court/Tribunal: Additional City Civil & Sessions Judge, Bengaluru (Civil Court)
Case Details: UC Credit has filed Commercial Arbitration Application No. 489 of 2026 under Section 9 of the Arbitration and Conciliation Act, 1996 against Ganesh Benzoplast Limited and Agarwal Bulkactives Private Limited (ABPL). The application is based on an alleged corporate guarantee dated January 31, 2024, said to have been given by the company for a term loan of ₹5,00,00,000 (₹5 crore) extended by UC Credit to ABPL.
Company's Position: The company states it has neither received any summons nor been provided any opportunity to submit its factual position regarding the subject matter. The company received a copy of the ex-parte ad-interim impugned order dated November 6, 2026 via email on November 12, 2026.
The company denies executing or authorizing any such guarantee, stating it relates to unauthorized transactions purportedly undertaken in the name of the company and/or its wholly owned subsidiary GBL Chemical Limited by its former Chief Executive Officer and others. Several civil and criminal proceedings relating to these matters are pending.
Prior Litigation: The company has already filed Commercial Suit No. 414 of 2025 before the Bombay City Civil Court against UC Credit, seeking declaration and cancellation of the alleged guarantee, together with Notice of Motion No. 4472 of 2025. This prior litigation is pending with UC Credit having appeared in the suit.
Previous Outcome: The National Company Law Tribunal (NCLT) vide its order dated July 15, 2026, dismissed UC Credit's Section 7 corporate insolvency proceedings (CP (IB) 1388 of 2025) against the company. The NCLT dismissed the petition on grounds that there was no debt owed or default committed by the company, finding the alleged guarantee to be forged, fabricated and fraudulent.
Police Complaint: The company filed a complaint dated June 24, 2026, at Vanrai Police Station against UC Credit, alleging its involvement with ABPL in connection with the transaction and the purported corporate guarantee.
Current Order Details
The Civil Court has passed an ex-parte ad-interim order issuing:
(a) Notice to GBL and ABPL to appear on December 4, 2026, and show cause why they should not furnish security for ₹8,27,15,948
(b) A conditional order of attachment in certain properties belonging to the company and ABPL, pending further orders
Financial Implications
The company explicitly states "None" for both expected financial implications and quantum of claims.
Next Steps
The company plans to appeal against the impugned order and take all necessary steps available under the law to safeguard the interests of the company.