The National Company Law Tribunal (NCLT) Bench of Ahmedabad has admitted initiation of insolvency proceedings against 'RMOL Engineering and Offshore Ltd' (till recently known as 'Reliance Marine Engineering and Offshore Ltd'), belonging to Anil Dhirubhai Ambani Group (ADAG).
The admission was made after Industrial Financial Corporation of India Ltd (IFCI), a public sector financial institution filed Section 7 petition under the Insolvency and Bankruptcy Code in the year 2017. IFCI had advanced a loan of 202 crores to Pipavav Marine and Offshore Limited in 2013 which was later taken over by Reliance. The company is liable to pay about 200 crores to IFCI.
The application was pending since 2017 due to series of adjournments granted by NCLT Ahmadabad. This led IFCI to file an appeal before the National Company Law Appellate Tribunal (NCLAT) Delhi which by its order dated April 11, 2019, directed NCLT Ahmedabad to take up the matter on urgent basis after hearing the 'Corporate Debtor' and pass the appropriate order by April 30, 2019.
However, despite the direction by the NCLAT, the case was further adjourned in two consecutive hearings. The IFCI again approached NCLAT against the grant of adjournment.
In appeal, the NCLAT, passed a scathing order as follows: "In the facts and circumstances, we give last opportunity to Mr. Harihar Prakash Chaturvedi, (Member Judicial) and Ms. Manorama Kumari, (Member Judicial), Adjudicating Authority ('National Company Law Tribunal'), Ahmedabad Bench, Ahmedabad to pass final order by 21st August, 2019 failing which the matter will be referred to the 'President, National Company Law Tribunal, New Delhi and the Secretary, Ministry of Corporate Affairs for appropriate orders."
In view of the direction, NCLT Ahmedabad conducted day to day hearing and passed the order of insolvency proceedings against RMOL.