Ganesh Benzoplast faces Rs 8.27 crore security court order

Ganesh Benzoplast Limited faces a Bengaluru Civil Court order requiring it and Agarwal Bulkactives Private Limited to show cause on December 4, 2026, why they should not furnish Rs 8.27 crore in security, while certain properties have been conditionally attached. Ganesh Benzoplast disputes the alleged Rs 5 crore corporate guarantee behind the case.

What has Ganesh Benzoplast been ordered to do?

Ganesh Benzoplast and Agarwal Bulkactives Private Limited, referred to as ABPL, must appear before the Additional City Civil & Sessions Judge, Bengaluru, on December 4, 2026, and show cause why security of Rs 8.27 crore should not be furnished. The direction forms part of an ex-parte ad-interim order dated November 6, 2026.

The Civil Court also conditionally attached certain properties of Ganesh Benzoplast and ABPL pending further orders. The November 13, 2026 disclosure does not identify the properties, state their values, or provide a calculation for the Rs 8.27 crore security amount.

Ganesh Benzoplast said it received a copy of the November 6 order by email on November 12, 2026. The company said it had not received summons or an opportunity to place its factual position before the Civil Court before the ex-parte order was made.

What is the Rs 5 crore guarantee dispute about?

The dispute concerns an alleged corporate guarantee dated January 31, 2024, which UC Inclusive Credit Private Limited, referred to as UC Credit, says Ganesh Benzoplast gave for a Rs 5 crore term loan extended to ABPL. UC Credit filed Commercial Arbitration Application No. 489 of 2026 under Section 9 of the Arbitration and Conciliation Act, 1996.

Ganesh Benzoplast has denied executing or authorising the alleged guarantee in the proceedings described in its November 13 disclosure. It said the purported guarantee related to unauthorised transactions allegedly undertaken in its name and/or that of its wholly owned subsidiary, GBL Chemical Limited, by its former chief executive officer and others.

The Rs 5 crore figure is the ABPL loan cited as the basis for the alleged January 2024 guarantee, whereas Rs 8.27 crore is the security amount in the November 2026 show-cause notice. The filing provides no break-up of either the underlying loan obligation or the security amount.

Ganesh Benzoplast listed “None” for both quantum of claims and expected financial implications from compensation, penalty or similar items. That disclosure does not alter the interim directions of November 6, which concern security and conditional attachment rather than a stated final payment liability.

What earlier proceedings has Ganesh Benzoplast disclosed?

Ganesh Benzoplast had already filed Commercial Suit No. 414 of 2025 before the Bombay City Civil Court, seeking a declaration and cancellation of the alleged guarantee. It also filed Notice of Motion No. 4472 of 2025, and said UC Credit had appeared in the suit, which remained pending on November 13, 2026.

The company said the validity of the alleged guarantee is sub judice in the Bombay City Civil Court litigation. That proceeding predates UC Credit’s Commercial Arbitration Application No. 489 of 2026 in Bengaluru, so the two cases concern related but separate procedural tracks.

Ganesh Benzoplast also said a Section 7 corporate insolvency proceeding filed by UC Credit, CP (IB) 1388 of 2025, was dismissed on July 15, 2026. According to Ganesh Benzoplast, the dismissal was based on there being no debt owed or default committed by the company, with the alleged guarantee described in the order as forged, fabricated and fraudulent.

Why does Ganesh Benzoplast say it could not respond earlier?

Ganesh Benzoplast said it had neither been served with UC Credit’s application nor received service before the Civil Court issued its November 6, 2026 ex-parte ad-interim order. The company said this was why it could not provide further details of the application at the stage of its November 13 disclosure.

The December 4, 2026 hearing is the first scheduled court event disclosed after Ganesh Benzoplast said it received the order on November 12. The filing does not report UC Credit’s arguments, the Civil Court’s detailed reasons, any response from ABPL, or a hearing held between November 6 and November 13.

GBL Chemical also filed a complaint at Vanrai Police Station on June 24, 2026, against UC Credit, alleging its involvement with ABPL in relation to the transaction and purported guarantee. Ganesh Benzoplast did not disclose an outcome of that complaint as of November 13, 2026.

The company said several civil and criminal proceedings on the alleged unauthorised transactions remain pending. The July 15 dismissal of CP (IB) 1388 of 2025 and the November 6 conditional attachment order are therefore separate disclosed developments, rather than final determinations of every issue.

What will Ganesh Benzoplast do next?

Ganesh Benzoplast plans to appeal the November 6, 2026 order and take steps available under law to safeguard its interests. The company did not specify an appellate forum, a filing date or a timetable for that proposed appeal in its November 13 disclosure.

The immediate disclosed event is the December 4, 2026 appearance on whether Rs 8.27 crore security should be furnished and whether the conditional attachment should continue. The company may also present its account of the alleged January 31, 2024 guarantee after saying it had not received service before the order.

The Bombay City Civil Court suit, Commercial Suit No. 414 of 2025, also remains unresolved. Ganesh Benzoplast’s filing therefore identifies three continuing matters: the planned appeal of the Bengaluru order, the December 4 hearing, and its pending challenge to the alleged guarantee in Mumbai.

Conclusion

Ganesh Benzoplast has disclosed a conditional attachment of unspecified properties and a December 4, 2026 hearing on Rs 8.27 crore security in UC Credit’s Bengaluru application. The company disputes the alleged Rs 5 crore ABPL loan guarantee, while reporting that its Bombay City Civil Court challenge remains pending and that the earlier CP (IB) 1388 of 2025 proceeding was dismissed on July 15, 2026.

The next item to watch is the December 4, 2026 Civil Court appearance, including whether security is required and whether the conditional attachment changes. Ganesh Benzoplast’s planned appeal of the November 6 order and the unresolved Commercial Suit No. 414 of 2025 will also determine how the dispute over the January 31, 2024 alleged guarantee progresses.