EXCLUSIVE
NCLT admits IDBI Bank's insolvency plea against HIL (India)
This story was originally published at 18:54 IST on 30 July 2025
Register to read our real-time news.Informist, Wednesday, Jul. 30, 2025
--NCLT admits IDBI Bank's insolvency plea against HIL (India)
--NCLT appoints Rohit Sehgal as HIL (India) interim resolution professional
By Surya Tripathi
NEW DELHI – The Delhi bench of the National Company Law Tribunal on Wednesday admitted IDBI Bank Ltd.'s plea to start insolvency proceedings against HIL (India) Ltd., a government of India enterprise, for an unpaid amount of INR 296 million. The tribunal appointed Rohit Sehgal as the interim resolution professional of HIL (India) to carry out the functions as per the Insolvency and Bankruptcy Code, 2016.
"Accordingly, the petition bearing no. (IB)-404(ND)/2024 filed by petitioner under Section 7 of the IBC (Insolvency and Bankruptcy Code), 2016 for initiating CIRP (corporate insolvency resolution process) against corporate debtor HIL (India) Ltd. is hereby admitted and adjudicating authority orders the commencement of the corporate insolvency resolution process, which shall ordinarily be completed within the timelines stipulated in the Code, 2016 (as amended), reckoning from the date on which this order is passed," said the tribunal. As a consequence, the moratorium as envisaged under the provisions of Section 14(1) of the 2016 Code shall follow in relation to HIL (India), the tribunal added.
The case has its genesis in the principal borrower Southern Pesticides Corp. Ltd. availing credit facilities from IDBI Bank. After the loan agreement was signed between Southern Pesticides and IDBI Bank, HIL (India) in 1988 executed a deed of corporate guarantee in favour of the bank against the loan facilities availed by the principal borrower.
Since Southern Pesticides could not adhere to the terms and conditions of the repayment schedule as per the loan agreement, its account was declared as a non-performing asset in 1994. Thereafter, the bank issued a legal demand notice to Southern Pesticides and HIL (India) and invoked the corporate guarantee through a letter. Thereafter, a debt recovery tribunal issued a recovery certificate to the bank against both Southern Pesticides and HIL (India) in 2018.
The bank said the balance sheet of HIL (India) for the financial year 2020-21 (Apr-Mar) reflected that the company had provided a guarantee in favour of IDBI Bank for securing credit facility availed by Southern Pesticides. HIL (India) has acknowledged the debt and did not dispute the position of outstanding dues, said IDBI Bank.
HIL (India), formerly known as Hindustan Insecticides Ltd., was incorporated in March 1954 with the objective of supplying dichlorodiphenyltrichloroethane for the government's National Malaria Eradication programme. Subsequently, the company diversified into agro-pesticides to meet the requirements of the agriculture sector and has grown manifold with a turnover of INR 2.15 billion in FY23. Presently, the company also operates in agro-inputs like agro-chemicals and seeds and has recently ventured into fertilisers so that all the requirements of the farming community can be met under one roof.
On Wednesday, shares of IDBI Bank ended 1.2% higher at INR 94.17 on the National Stock Exchange. End
Edited by Tanima Banerjee
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
