Legal Triumph for Ganesh Benzoplast: NCLAT Dismisses Insolvency Appeal Filed by Progfin Private Limited

Ganesh Benzoplast Limited (NSE: GANESHBE; BSE: 500153), a prominent chemical and infrastructure player, today announced a significant legal victory. The Principal Bench of the Hon'ble National Company Law Appellate Tribunal (NCLAT) in New Delhi has formally dismissed an appeal filed by financial creditor Progfin Private Limited, which had sought to initiate the Corporate Insolvency Resolution Process (CIRP) against the company.

Origin of the Dispute and the Purported Corporate Guarantee

The litigation stems from a long-standing financial dispute involving unauthorized transactions. Progfin Private Limited had extended credit facilities to GBL Chemical Limited, a wholly-owned subsidiary of Ganesh Benzoplast. Progfin subsequently claimed that the parent listed company, Ganesh Benzoplast Limited, had issued a corporate guarantee backing these operational credit lines.

Ganesh Benzoplast has continuously maintained across its regulatory filings that these credit interactions were part of a series of unauthorized transactions orchestrated by Mr. Ramakant Pilani and other associated individuals in the name of the company and its subsidiary.

When an alleged repayment default occurred, Progfin moved under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, trying to drag the parent company into bankruptcy proceedings before the National Company Law Tribunal (NCLT) in Mumbai. The Mumbai Bench of the NCLT subsequently dismissed Progfin's petition on September 1, 2025. Refusing to accept the ruling, Progfin filed an appeal under Section 61 of the IBC before the appellate tribunal in New Delhi.

The NCLAT Final Order and Financial Impact

Following detailed arguments, the NCLAT Principal Bench issued its final verdict, completely dismissing Progfin's appellate petition and upholding the original NCLT Mumbai order. The judgment brings a definitive conclusion to the insolvency threat hanging over the parent entity regarding this specific dispute.

Ganesh Benzoplast confirmed the following structural details regarding the financial and operational status of the litigation:

Financial Implications: The company has made it clear that there are absolutely no financial liabilities, compensatory outlays, or penalties imposed on it as a result of the NCLAT order.

Quantum of Claims: The total outstanding claim value against the company under this petition has been officially marked down to zero.

Operational Continuity: With the insolvency appeal thrown out, the company's capital structure, executive control, and asset base remain completely unencumbered by corporate insolvency claims from this matter.

Shares of GANESH BENZOPLAST LTD. was last trading in BSE at Rs. 107.20 as compared to the previous close of Rs. 104.00. The total number of shares traded during the day was 52117 in over 817 trades.

The stock hit an intraday high of Rs. 110.30 and intraday low of 103.15. The net turnover during the day was Rs. 5588705.00.

Source : Election Commission of India

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