The National Company Law Tribunal (NCLT), has admitted insolvency claim against M/s Hellios Tubealloys Pvt, a mumbai based firm, who had availed financial assistance from Bank of Baroda (BOB), securing a term loan of Rs 3.66 crore and additional credit facilities amounting to Rs 30.05 crore.
Hellios Tubealloys Pvt. Ltd. was engaged in the manufacturing and export of stainless steel and alloy steel pipes. The company had availed financial assistance from Bank of Baroda (BOB), securing a term loan of Rs 3.66 crore and additional credit facilities amounting to Rs 30.05 crore. However, due to adverse market conditions and operational difficulties, the company failed to regularize its loan account, leading BOB to classify it as a Non-Performing Asset (NPA) on July 29, 2013. Subsequently, the bank issued a demand notice under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002, raising a demand of ₹31.92 crore. The bank took symbolic possession of the company’s immovable properties on July 21, 2014.
As part of the company’s revival attempts, the management had initially sought relief under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA) by filing a reference before the Board for Industrial and Financial Reconstruction (BIFR) in 2014. However, with the enactment of the Insolvency and Bankruptcy Code, the company later filed an insolvency petition under Section 10 of IBC, 2016, which was admitted by NCLT on December 19, 2023.
With the admission of the insolvency petition, the resolution process against Mr. Mahesh Shantilal Sanghvi shall be proceeded against firm, potentially leading to asset evaluation, creditor claims, and debt restructuring or liquidation.
The matter will now proceed under the Individual Insolvency Resolution Process, as per the orders from the Tribunal.
