Key Development
The Hon'ble National Company Law Appellate Tribunal (NCLAT), Principal Bench, New Delhi, dismissed an appeal filed by Progfin Private Limited. The NCLAT order is dated June 30, 2026. The certified true copy of this order was received by the company on July 15, 2026, and the disclosure is being made on July 16, 2026.
Details of the Litigation
The dismissed appeal was filed by Progfin Private Limited under Section 61 of the Insolvency and Bankruptcy Code, 2016 (IBC). It was an appeal against an order passed by the National Company Law Tribunal (NCLT), Mumbai Bench, dated September 1, 2025.
The original NCLT petition (filed under Section 7 of the IBC) by Progfin sought the initiation of a corporate insolvency resolution process against Ganesh Benzoplast Limited. The petition was based on an alleged default in the repayment of credit facilities that were extended to the company's wholly owned subsidiary, GBL Chemical Limited. The company had purportedly issued a corporate guarantee for these facilities.
The NCLT had dismissed this petition on September 1, 2025. Progfin's appeal against this dismissal has now been dismissed by the NCLAT.
The disclosure references that this litigation is related to "unauthorised transactions undertaken by Mr. Ramakant Pilani and others in the name of the Company and/or its wholly owned subsidiary."
Financial and Operational Impact
The company has explicitly stated that there are no expected financial implications due to compensation or penalty from this proceeding. The quantum of claims is stated as 'None'.
Status Change
The development is that the NCLAT has dismissed the appeal, upholding the NCLT's earlier decision to dismiss the insolvency petition against the company.