The National Company Law Tribunal (NCLT) has dismissed the petition filed against Bajaj Hindusthan Sugar, marking a resounding victory for the Indian conglomerate known for its legacy of trust, transparency, and fair play. This outcome comes on the heels of the State Bank of India (SBI) filing a petition for the withdrawal of the original case, subsequent to Bajaj Hindusthan Sugar settling its outstanding debt, effectively affirming its unwavering commitment to its stakeholders.
The NCLT's decision was grounded in the recent developments, as outlined in its order, stating, "As per the previous order dated 13th October 2023, Ld. Counsel representing the Financial Creditor made a statement that, as per his instructions, the outstanding amount as fallen due has been paid by the Corporate Debtor, and therefore, he further stated that he would be moving an appropriate application for withdrawal of the present petition."
Bajaj Hindusthan Sugar, one of the nation's largest sugar producers, had previously owed banks approximately Rs 4,771 crore and had availed of two debt-restructuring schemes. The lion's share of this debt was attributed to the SBI, accounting for approximately Rs 1,192 crore. Prior to the legal proceedings, the lenders had declared Bajaj Hindustan Sugar a non-performing asset.
The NCLT's order further elucidated, "In view of the averments made in the application and the statement made by the Ld. Counsel representing the Financial Creditor and there being no objection of the Ld. Sr. Counsel for the Corporate Debtor to the said withdrawal of the main petition, the present application is allowed and the main petition is dismissed as withdrawn. However, all parties are left to their further rights and remedies in accordance with law."
Bajaj Hindusthan Sugar bounces back; CMO joyous
In a resounding show of confidence, shares of Bajaj Hindusthan Sugar witnessed a 2 percent surge, trading at Rs 23.99 at 1.15 PM, reflecting the positive sentiment surrounding the company.
Bajaj Hindusthan Sugar's dedication to its stakeholders and commitment to ethical business practices has been central to its enduring legacy. This prominent Indian sugar and ethanol manufacturer, affiliated with the illustrious Bajaj Group under the leadership of Kushagra Bajaj, operates 14 strategically located sugar plants throughout the state of Uttar Pradesh. These facilities boast an impressive daily sugarcane-crushing capacity of 1,36,000 tonnes, along with substantial alcohol distillation capabilities, capable of producing 800 kiloliters of alcohol per day.
The agricultural landscape of Uttar Pradesh hangs in the balance as the fate of nearly 600,000 sugarcane farmers hinges directly on the well-being of sugar factories owned by the esteemed Bajaj Group.
Neeraj Jha, Group President & Chief Communications Officer of the Bajaj Group, reacted to the positive development, stating, "It's a great feeling. As you'd know, it was a difficult period for the company when so much was at stake, none more than our reputation. We're relieved as well as grateful." He went on to express gratitude to the lenders and all stakeholders for their unwavering support and trust in the company's ethos of conducting business.
Bajaj Hindusthan Sugar's successful resolution of this matter allows the company to redouble its focus on a promising future, which it believes will be a win-win for all stakeholders, including lenders, governments, employees, shareholders, investors, and the countless sugarcane farmers who form an integral part of the Bajaj family, having stood steadfast through thick and thin.