Gujarat Ambuja Exports faces insolvency petition at NCLT

Gujarat Ambuja Exports, a manufacturer of starch derivatives, has been dragged to the bankruptcy courts by one of its suppliers for recovery of payments due to it.

The case has been being filed by Delta Global Resources, which supplied coal to Gujarat Ambuja, said a company executive.

“We supplied coal against which we haven’t received the payments. The company is not releasing our payments which fell due since August 2017,” said Piyush Goel, director at Delta Global Resources confirming the NCLT application.


The sum of non-repayments including interest cost is estimated to be Rs. 1.25 crore but it is the Insolvency Bankruptcy Code that empowers even operational creditors to drag a defaulting company to NCLT.

“The company has money but is not repaying due to some other matter. It has reached out to the operational creditor for a settlement. This is the power of IBC,” said a senior executive involved in the matter.

But Gujarat Ambuja Exports said that its financial strength is very sound and the dispute is more civil in nature.

“We would like to state that dispute for contracts which is civil in nature and as the matter is sub-judice we are unable to comment further on the matter except the fact that company is sound with very good networth and credential in the market,” said Sanjay Maniar, GM (Corporate) at Gujarat Ambuja Exports.

“We are going to object the matter. It is further submitted we have already filed civil suit against the said party,” he said in an email reply.

Nipun Singhvi and Vishal Dave, two Ahmedabad-based advocates are representing Delta Global Resources, which supplied imported coals to the company in August, 2017.

Ambuja Exports shares rose 2.8% to close at Rs 247.85 Wednesday.