In Standard Chartered Bank v Prag Distillery Private Limited (2017), liquidator Dipti Mehta applied for withdrawal of the company petition under section 12A of the Insolvency and Bankruptcy Code, 2016, against Standard Chartered Bank.
The submission to the tribunal stated that due to Prag Distillery’s failure to meet its obligations, one of the six respondents Amit Dahanukar, entered into a settlement agreement in November 2020, and a supplementary agreement in August 2021, with Standard Chartered Bank. Dahanukar was seeking to revive Prag.
Prag agreed to pay USD2.25 million, settling the debt owed to Standard Chartered Bank, fulfilling the distillery’s payment commitments. The board of directors had also been reinstated to oversee the company’s operations.
Based on the submissions, the NCLT used its discretionary authority to grant permission to Prag Distillery, a subsidiary of Tilaknagar Industries to exit the liquidation proceedings. Tilaknagar is an Indian manufacturer of spirits such as gin and whisky.
Argus assisted Standard Chartered Bank in successfully managing the settlement process with Tilaknagar, ensuring the recovery of outstanding debts owed by Prag Distillery. The Argus team consisted of partner Murtaza Kachwalla and principal associate Aashdin Chivalwala.