Heranba Industries Limited has disclosed that Haresh Petrochem Private Limited has filed an insolvency application against the company at the National Company Law Tribunal (NCLT) Ahmedabad. The filing was made under Section 9 of the Insolvency and Bankruptcy Code, 2016, involving a payment dispute worth Rs. 2.63 crores.

Case Details and Financial Impact

The insolvency petition was filed on March 20, 2026, with the next hearing scheduled for April 20, 2026. The company has provided comprehensive details of the case as required under Schedule III of SEBI LODR regulations.

Company's Position on Payment Dispute

Heranba Industries has explained that the payment was temporarily withheld due to quality issues identified in the goods or services supplied by Haresh Petrochem Private Limited. The company stated it is actively coordinating with the petitioner to resolve the quality matter that led to the payment delay.

Expected Resolution and Impact Assessment

The company expressed confidence that upon resolution of the quality issue, the payment will be duly released. Heranba Industries expects the matter to be settled amicably outside the NCLT proceedings without requiring formal adjudication.

Regarding potential impact, the company acknowledged that the initiation of insolvency proceedings may have material impact on its financial position, operations, or future prospects, depending on the outcome. However, it emphasized that once the matter is settled, there will be no impact on the company.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Company Secretary and Compliance Officer Abdul Latif signed the intimation, ensuring compliance with regulatory requirements. The company has committed to providing timely updates on further developments in this matter as required under SEBI LODR regulations.

Heranba Industries Limited has disclosed to stock exchanges that its wholly owned subsidiary faces insolvency proceedings following a payment dispute with a vendor. The company filed the mandatory disclosure under Regulation 30 of SEBI LODR, detailing the legal action initiated against Heranba Organics Private Limited (HOPL).

Insolvency Petition Details

Haresh Petrochem Private Limited has filed an insolvency application under Section 9 of the Insolvency and Bankruptcy Code, 2016, before the Hon'ble National Company Law Tribunal (NCLT) Mumbai. The petition seeks resolution of a payment dispute that has escalated to formal legal proceedings.

Financial Claims and Outstanding Amount

The dispute centers around a payment obligation totaling ₹1.70 crore that has been partially settled by HOPL. The company has made part payments toward the original claim, leaving a significant outstanding balance that prompted the insolvency petition.

Reason for Payment Delay

Heranba Industries has attributed the delay in settling the outstanding amount to quality issues identified in the goods or services supplied by Haresh Petrochem. According to the company's disclosure, HOPL is actively coordinating with the petitioner to resolve these quality-related concerns that led to the temporary withholding of the balance payment.

Expected Resolution and Impact

The company has expressed confidence in reaching an amicable settlement outside the NCLT proceedings. Heranba Industries expects that upon resolution of the quality issues, the remaining payment will be released and the matter will be settled without requiring formal adjudication.

Regarding the potential impact on the parent company, Heranba Industries has acknowledged that as HOPL is a 100% wholly owned subsidiary, the initiation of insolvency proceedings may have a material impact on the consolidated financial position, operations, or future prospects, depending on the outcome. However, the company has indicated that once the matter is settled, there will be no impact on Heranba Industries Limited.

Regulatory Compliance

The disclosure was made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with Schedule III. The company has committed to providing timely updates on further developments in this matter as required under SEBI LODR regulations.