Case Details

Case Name: IA(I.B.C.)/900(CH)2025 in CP(IB) No.161/Chd/HP/2023

Parties: Dr. Vijay Vohra (Applicant) vs. Himalaya Food International Ltd (Respondent) in the main matter of Himalaya Food International Ltd vs. A.P.J Laboratories Ltd

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

Case Numbers: IA(I.B.C.)/900(CH)2025 and CP(IB) No.161/Chd/HP/2023

Order Date: 22.05.2026

Judges: Shri Kaushalendra Kumar Singh (Member Technical) and Shri Khetrabasi Biswal (Member Judicial)

Period of Dispute: Transactions from 2012 onwards, with default date of 10.10.2015

Parties Involved

Petitioners in Main Case: Himalaya Food International Ltd (Financial Creditor), represented by Sh. Basant Kumar Sharma

Respondents in Main Case: A.P.J. Laboratories Ltd (Corporate Debtor), represented through Director Sh. Man Mohan Malik

Applicant in IA: Dr. Vijay Vohra, Director and Shareholder of A.P.J. Laboratories Ltd (holding 18.37% shares)

Key Officials: Mr. Man Mohan Malik, Mrs. Sangita Malik, Mr. Sanjiv Kumar Kakkar (directors); Mr. P.C. Bhandari (former director); Ms. Pooja Damir Miglani (appointed IRP)

Issues / Allegations / Violations

Dr. Vijay Vohra filed application under Section 65(1) of IBC alleging:

  • Fraudulent and malicious initiation of insolvency proceedings by Himalaya Food International Ltd
  • Financial Creditor created credit facilities after Corporate Debtor had already become NPA
  • Violation of SEBI guidelines in transaction structure
  • Related party relationship between companies with three common directors
  • Fraudulent appointment of Mr. P.C. Bhandari as director solely to execute credit facility documents
  • Suppression of material facts regarding removal of charge on assets ordered by Himachal Pradesh High Court
  • Financial distress caused by mismanagement resulting in bank dues of approximately ₹48 crores

Findings & Observations

Tribunal made the following key observations:

  • Applicant did not dispute transfer of funds or reflection of amounts in Balance Sheets as long-term borrowings
  • Agreement dated 28.08.2015 remains unchallenged and not declared void by any competent forum
  • Reflection of debt in statutory financial statements constitutes clear acknowledgment of liability
  • No substantive documentary evidence provided to establish fraudulent appointment of Mr. P.C. Bhandari
  • Mere existence of common management or related party status insufficient to infer fraudulent initiation of CIRP
  • Himachal Pradesh High Court order dated 09.03.2023 pertained to removal of charge but did not adjudicate extinguishment of underlying debt
  • Satisfaction of charge only signifies release of security interest, not automatic discharge of underlying debt
  • Corporate Debtor had appeared through counsel and expressed no objection to admission of petition
  • Section 65 is penal provision requiring clear material to establish fraudulent intent, which was not met

Penalties / Settlements / Directions

On IA Application: Application rejected and disposed of with no penalties imposed on either party

On Main Section 7 Petition:

  • Corporate Insolvency Resolution Process admitted against A.P.J. Laboratories Ltd
  • Moratorium declared under Section 14 of IBC with effect from order date
  • 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
  • IRP directed to make public announcement and call for submission of claims under Section 15

Corrective Actions & Future Obligations

  • IRP to conduct CIRP as per provisions of IBC and related Rules and Regulations
  • IRP to protect and preserve value of Corporate Debtor's property and manage operations as going concern
  • All personnel of Corporate Debtor required to extend assistance and cooperation to IRP under Section 19
  • Supply of essential goods or services to Corporate Debtor shall not be terminated during moratorium
  • IRP to serve copy of Order to various departments (Income Tax, GST, State Trade Tax, Provident Fund) and trade unions/employees associations

Final Ruling & Enforcement

On IA Application: IA(I.B.C.)/900(CH)2025 rejected and disposed of

On Main Case: CP(IB) No.161/CHD/HP/2023 admitted with following directions:

  • CIRP commencement effective from date of Order (22.05.2026)
  • Moratorium to continue until completion of CIRP or approval of resolution plan or liquidation order
  • IRP to perform functions under sections 17, 18, 20 and 21 of IBC
  • Registry directed to communicate copy of Order to both parties and IRP
  • Case stands allowed and disposed of