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Bankruptcy court admits insolvency resolution plea against Goli Vada Pav


A bankruptcy court has admitted Mumbai-based quick service restaurant (QSR) chain Goli Vada Pav Pvt. Ltd. under the corporate insolvency resolution process (CIRP) and has appointed Vinod Radhakrishnan Nair as the resolution professional of the company.

Goli Vada Pav was taken to the Mumbai bench of the National Company Law Tribunal (NCLT) by Vista Processed Foods Pvt. Ltd, an operational creditor of the company, after it defaulted on dues of about Rs 3.56 crore.

“We are of the considered view that the operational creditor (Vista Processed) has been able to establish the existence of the operational debt due on account of the supply of goods to the corporate debtor (Goli Vada Pav) in respect of which default has been committed by the latter,” said a division bench of judicial member Kuldip Kumar Kareer and technical member Anil Raj Chellan.

“It has also been established that the instant application has been filed within the limitation. Therefore, we find the application to be a fit one to be admitted,” observed the tribunal in its order of September 5.
Before the NCLAT issued its order, the counsel for Vista Processed Foods argued that after numerous defaults in paying the outstanding dues, it had served a demand notice to Goli Vada Pav on November 15, 2022, followed by a revised demand notice on November 29, 2022, under the Insolvency & Bankruptcy Code (IBC). “Despite the debt being an admitted debt, the corporate debtor has failed to pay the same,” argued the operational creditor in its application. Countering this, Goli Vada Pav argued through its counsel that the demand notice was buried by the limitation. The company also argued that the operational creditor (Vista Processed Foods) has wrongly claimed interest as there is no mention of any interest clause, either in the invoices or in the purchase orders. “Suspended management (of Goli Vada Pav) has the option to challenge the order before the appellate tribunal (NCLAT) or alternatively, it can settle the dispute with the operational creditor before the formation of the Committee of Creditors (CoC),” said Nipun Singhvi, managing partner of law firm NSA Legal.

Vista Processed Foods is part of the US-headquartered OSI Group that supplies frozen vegetable and chicken patties to several QSR brands across India. Founded in 2004 by Venkatesh Iyer and Shiv Menon, Goli Vada Pav has about 300 stores in 100 cities, according to the company website.


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