NCLT Admits Punjab and Sind Bank's Insolvency Petition Against Diksha Greens Limited

The National Company Law Tribunal, Kolkata has admitted Punjab and Sind Bank's petition under Section 7 of the Insolvency and Bankruptcy Code against Diksha Greens Limited, initiating Corporate Insolvency Resolution Process. The bank had sanctioned credit facilities totaling ₹22.45 crores to Diksha Greens in January 2018, including cash credit, letters of credit, bank guarantee, and term loan facilities. The account was classified as non-performing asset on February 22, 2019, with outstanding dues of ₹46.90 crores as of September 30, 2024. Diksha Greens argued that a factory fire in December 2018 destroyed stock worth ₹146.2 crores and claimed the bank arbitrarily classified the account as NPA despite restructuring discussions and a deposit of ₹1.32 crores. The tribunal found sufficient evidence of debt and default, noting that the company acknowledged the liability in its balance sheets for financial years 2020-21 and 2022-23. Pankaj Khaitan has been appointed as Interim Resolution Professional, and a moratorium under Section 14 is now in effect.