NCLT Admits Insolvency Against APJ Laboratories

Case Name: CP (IB) No.161/Chd/HP/2023

Parties: Himalaya Food International Limited (Financial Creditor/Applicant) vs A.P.J. Laboratories Limited (Corporate Debtor/Respondent)

Court/Authority: National Company Law Tribunal Chandigarh Bench (Court-II)

Order Date: 22.05.2026

Period of Dispute: Loan disbursed since 2012, default date 10.10.2015

Petitioner/Financial Creditor: Himalaya Food International Limited, represented by Authorized Representative Sh. Basant Kumar Sharma

Respondent/Corporate Debtor: A.P.J. Laboratories Limited, through Director Sh. Man Mohan Malik

Common Directors: Three directors are common between both companies

Intervenor: Dr. Vijay Vohra, Director and Shareholder of Corporate Debtor (filed IA challenging the petition)

Insolvency Professional: Ms. Pooja Damir Miglani (Appointed as IRP)

Financial Creditor advanced total loan of ₹5,61,79,000 to Corporate Debtor since 2012 through bank transfers
Mortgage deed dated 28.08.2015 converted unsecured loan to secured loan with properties mortgaged in favor of Financial Creditor
Repayment terms: 120 monthly installments of ₹8,22,327 each starting from 10.10.2015 at interest rate of 12.50% p.a.
Charge was duly registered with Registrar of Companies under Section 77 of Companies Act, 2013 on 28.08.2015
Corporate Debtor failed to repay installments as agreed, with first default occurring on 10.10.2015
Financial Creditor issued repayment notice on 20.03.2018, which Corporate Debtor acknowledged but did not repay
Charge was subsequently removed pursuant to order dated 09.03.2023 by Hon'ble Shimla High Court in CWP No. 7719 of 2021

Corporate Debtor did not file any reply to the petition but filed affidavit dated 04.09.2024 affirming petition is not collusive
Corporate Debtor admitted financial inability to repay dues as company has been non-operational since 2015
Corporate Debtor conveyed No Objection Certificate for initiation of CIRP against it
IA(I.B.C.) No. 900/CH/2025 filed by Dr. Vijay Vohra alleging fraudulent initiation was dismissed by Adjudicating Authority
Tribunal found debt recorded in Balance Sheets of Corporate Debtor from FY 2011-2012 to FY 2021-2022, amounting to acknowledgement under Section 18 of Limitation Act
Debt amount of ₹14,41,09,996/- as on 31.03.2023 is above threshold limit of ₹1 crore under Section 4 of IBC
Application found to be within limitation and defect-free

Application admitted under Section 7 of Insolvency and Bankruptcy Code, 2016
Moratorium declared under Section 14 of IBC prohibiting: institution/continuation of suits against corporate debtor; transfer/alienation of assets; foreclosure/recovery actions; recovery of property by owners/lessors
Moratorium effective from order date until completion of CIRP or approval of resolution plan/liquidation order
Ms. Pooja Damir Miglani (IBBI/IPA-002/IP-N001189/2021-22/13994) appointed as Interim Resolution Professional
Financial Creditor directed to pay advance of ₹4,00,000 to IRP within two weeks for smooth conduct of CIRP

IRP to make public announcement of CIRP initiation and call for submission of claims under Section 15
Supply of essential goods/services to Corporate Debtor shall not be terminated during moratorium period
Corporate Debtor to provide effective assistance to IRP when taking charge of assets and management
All personnel connected with Corporate Debtor must extend assistance and cooperation to IRP under Section 19 of IBC
IRP to protect and preserve value of Corporate Debtor's property and manage operations as going concern under Section 20
IRP to serve copy of order to various departments (Income Tax, GST, State Trade Tax, Provident Fund) and trade unions/employees associations

Corporate Insolvency Resolution Process commenced effective from date of order (22.05.2026)
CP (IB) No. 161/CHD/HP/2023 allowed and disposed of
Registry directed to communicate copy of order to both parties and IRP immediately