The National Company Law Tribunal (NCLT) has dismissed insolvency proceedings moved by the State Bank of India (SBI) against Bajaj Hindusthan Sugar (Bajaj Hindusthan) after the state-owned lender withdrew the petition.

The outstanding amount was paid by the Kushagra Bajaj-led sugar manufacturer. SBI had moved an application before the Allahabad bench of the NCLT informing that the outstanding amount was paid by the company.

“The lead counsel representing the financial creditor made a statement that according to his instructions the outstanding amount has been paid by the corporate debtor, and, therefore, he would be moving an appropriate application for withdrawal of the present petition,’’ the NCLT order said.

The counsel informed that the company has deposited “overdue amount towards term loan and OCD (optionally convertible debentures) coupons, and has also assured to pay the future overdues/instalments with interest thereon, as and when, the same becomes due and payable.”

He added that “under such circumstances, SBI, the applicant, has decided not to pursue its application under Section 7 of the IBC 2016 at this stage”.

Admitting this, a two-member bench of the NCLT “dismissed as withdrawn” the insolvency plea filed by the bank.

“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to the said withdrawal of the main petition, the present application is allowed and the main petition is dismissed as withdrawn,” said NCLT in its order on October 25.