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Ganesh Benzoplast scores major legal win as NCLAT rejects Progfin’s insolvency appeal
The dispute originated from credit facilities extended by Progfin Private Limited to GBL Chemical Limited
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By ICN Bureau | July 21, 2026
Ganesh Benzoplast has secured a decisive legal victory after the National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by financial creditor Progfin Private Limited seeking to initiate insolvency proceedings against the company.
The ruling by the Principal Bench of the NCLAT upholds the earlier decision of the National Company Law Tribunal (NCLT), Mumbai, which had rejected Progfin’s Corporate Insolvency Resolution Process (CIRP) petition against Ganesh Benzoplast.
The dispute originated from credit facilities extended by Progfin Private Limited to GBL Chemical Limited, a wholly owned subsidiary of Ganesh Benzoplast. Progfin had claimed that Ganesh Benzoplast had provided a corporate guarantee for the subsidiary’s operational credit lines.
Ganesh Benzoplast, however, maintained in its regulatory filings that the transactions were unauthorized and were allegedly carried out by Mr. Ramakant Pilani and other associated individuals in the name of the company and its subsidiary.
Following an alleged repayment default, Progfin filed proceedings under Section 7 of the Insolvency and Bankruptcy Code (IBC), 2016, before the NCLT Mumbai, seeking to bring Ganesh Benzoplast into insolvency proceedings. The NCLT dismissed the petition on September 1, 2025.
Progfin subsequently challenged the order before the NCLAT under Section 61 of the IBC. After hearing detailed arguments, the appellate tribunal dismissed the appeal and confirmed the NCLT Mumbai order.
The NCLAT order marks a significant legal relief for Ganesh Benzoplast, removing a key uncertainty surrounding the insolvency proceedings and reinforcing the company’s operational continuity.
