Tasty Dairy Specialities Limited Enters Insolvency Process Following Punjab National Bank's Application

2 min read Updated on 14 Oct 2025, 06:11 PM

Reviewed by

Riya DeyScanX News Team

Overview

Tasty Dairy Specialities Limited has entered the Corporate Insolvency Resolution Process (CIRP) after an order by the National Company Law Tribunal (NCLT), Allahabad bench. The order came in response to Punjab National Bank's application citing a financial debt of Rs. 72.59 crore. The CIRP was initiated on October 7, 2025, with Mr. Anish Agarwal appointed as the Interim Resolution Professional. The company defaulted on December 28, 2021, despite availing various COVID-19 relief schemes and attempting debt restructuring. The CIRP implementation suspends the Board of Directors' powers and imposes a moratorium on certain actions against the company.

*this image is generated using AI for illustrative purposes only.

Tasty Dairy Specialities Limited , a prominent player in the dairy industry, has entered the Corporate Insolvency Resolution Process (CIRP) following an order by the National Company Law Tribunal (NCLT), Allahabad bench. The development comes after Punjab National Bank (PNB) filed an application under Section 7 of the Insolvency and Bankruptcy Code, 2016, citing a substantial financial debt.

Key Details of the Insolvency Proceedings

The NCLT's order, dated October 7, 2025, reveals several crucial aspects of the case:

Aspect	Detail
Total Financial Debt	Rs. 72.59 crore
Date of Default	December 28, 2021
CIRP Initiation Date	October 7, 2025
Interim Resolution Professional	Mr. Anish Agarwal

Background of the Financial Relationship

The financial relationship between Tasty Dairy Specialities and Punjab National Bank dates back to 2003 when the bank initially sanctioned facilities worth Rs. 1.20 crore. Over time, these facilities were enhanced, ultimately reaching Rs. 72.59 crore by February 2021.

COVID-19 Impact and Restructuring Attempts

During the COVID-19 pandemic, Tasty Dairy Specialities availed various relief schemes offered by the government. These included:

Funded Interest Term Loan (FITL) under RBI guidelines
COVID Emergency Credit Facility (CECF) Loan
Guaranteed Emergency Credit Line (GECL) 2.0

Despite these measures, the company struggled to maintain its financial obligations. A restructuring attempt was made in August 2022, with the bank approving a restructuring of the existing debt into sustainable (Rs. 59.67 crore) and unsustainable (Rs. 12.21 crore) portions. However, this restructuring was declared failed on June 30, 2023, due to non-compliance with terms and conditions.

Legal Proceedings and Recovery Efforts

Prior to the insolvency application, Punjab National Bank had initiated several steps to recover the dues:

Issued demand notices under the SARFAESI Act
Filed an Original Application (OA) before the Debt Recovery Tribunal, Allahabad

Implications of the CIRP

With the commencement of the CIRP:

A moratorium has been declared, prohibiting certain actions against the company.
The powers of the Board of Directors stand suspended.
Mr. Anish Agarwal has been appointed as the Interim Resolution Professional to manage the company's affairs and initiate the resolution process.

Looking Ahead

The initiation of the CIRP marks a critical juncture for Tasty Dairy Specialities Limited. The coming months will be crucial as stakeholders work towards finding a resolution that balances the interests of creditors while potentially salvaging the company's operations.

As the process unfolds, it will be important to monitor the actions of the Committee of Creditors and any potential resolution plans that may emerge. The outcome of this insolvency process could have significant implications not only for the company and its creditors but also for the broader dairy industry in the region.

Historical Stock Returns for Tasty Dairy Specialities