The National Company Law Tribunal (NCLT) has allowed the withdrawal of the insolvency plea against Bajaj Hindusthan by the State Bank of India, as the outstanding amount has been paid by the sugar manufacturer.

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SBI had moved an application before the Allahabad bench of the NCLT informing that the outstanding amount has been paid by the Corporate Debtor.

Bajaj Hindusthan, during the pendency of the matter, has deposited "overdue amount towards Term Loan and OCD coupons, and has also assured to pay the future overdues/Installments with interest thereon, as and when, the same becomes due and payable," said a statement filed by SBI before the insolvency tribunal.

"Under such circumstances, the applicant, State Bank of India, has decided not to pursue its application u/s 7 of IBC 2016 at this stage," it added. Admitting this, a two-member bench of the NCLT "dismissed as withdrawn" the insolvency plea filed by the lead banker.

"In view of the averments made in the application and the statement made by the counsel representing the Financial Creditor (SBI) and there being no objection of the Senior counsel for the Corporate Debtor (Bajaj Hindusthan) to the said withdrawal of the main petition, the present application is allowed and the main petition is dismissed as withdrawn," said NCLT in its order on October 25.

However, it also added all parties are left to their further rights and remedies in accordance with law. Later, the company in a statement thanked the lenders and stakeholders.

"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," said Bajaj Group Spokesperson Neeraj Jha.

This development will allow the company to focus on this business, which has an exciting future, he added. 

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