Jan 21, 2021
On January 11th, 2021, The National Company Law Tribunal (NCLT) declared for the liquidation of Kwality Limited. The long time debt-ridden Kwality Ltd was already under scanner for cheating a group of banks led by Bank of India.
In December 2018, the company agreed to indebtedness on a petition moved by Punjab National Bank (PNB) and global private equity firm KKR.
Having made an initial offer of Rs.130 jointly by Haldiram Snacks and Pioneer securities and which was later revised to Rs. 145 crore, the offer did not materialize as the majority of the funds in the resolution plan were allocated to the financial creditors.
The Committee of Creditors (CoC) tuned down the resolution plan submitted by Haldiram Snacks, the sole bidder resulting in the application for liquidation being moved.
In 1992, Kwality Ltd. was incorporated as Kwality Dairy (India) Ltd. The company was set up as a backward integration unit of Kwality Ice Creams India Ltd and was acquired by Dhingra Family in 2002 and is in the business of products such as milk, ghee, milk powders, lassi, chaach, and flavoured milk. Kwality Ltd owes over Rs.1900 crore to its lenders. The declaration was passed by Technical member Narendra Kumar Bhola and the Judicial member CH. Mohd Sharief Tariq via video conferencing giving the final words.