NCLT approves Grainotch Industries INR 1.6 bln resolution plan for KGS Sugar
This story was originally published at 17:36 IST on 3 October 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal has approved Grainotch Industries Ltd.'s INR 1.62 billion resolution plan for KGS Sugar & Infra Corp. Pvt. Ltd. and rejected objections raised by the consortium of Govindrao Sable, Shobha G. Sable and Pravin G. Sable, the unsuccessful resolution applicants of the debt-ridden company.
"...we do not find that there are any material irregularities in the process followed for the approval of the resolution plan before us so as to warrant interference in the exercise of the commercial wisdom of the CoC (committee of creditors)," said the tribunal. The resolution plan by Grainotch Industries was not in contravention of any of the provisions of the Insolvency and Bankruptcy Code, 2016, the tribunal added.
In 2019, the tribunal had admitted a petition by Canara Bank to start insolvency proceedings against KGS Sugar. Initially, the tribunal had approved Gangamai Industries and Construction Ltd.'s resolution plan for the debt-ridden company in 2023, however the resolution applicant failed to implement its plan. Consequently, the tribunal had directed for re-running the corporate insolvency resolution process for KGS Sugar.
In June, the committee of creditors of KGS Sugar approved Grainotch Industries' resolution plan with 99.9% favourable votes. Apart from Canara Bank, the committee of creditors of the debt-ridden company includes Central Bank of India, Indian Overseas Bank and others.
On Friday, shares of Canara Bank ended 1.7% higher at INR 125.90 on the National Stock Exchange, shares of Central Bank of India ended 0.5% higher at INR 37.80 while those of Indian Overseas Bank ended 0.8% higher at INR 39.89. End
Reported by Surya Tripathi
Edited by Vandana Hingorani
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