38.6c New Delhi, India, Friday, December 09, 2022
Top Stories
Interviews Know The Law Book Reviews Videos
About Us Contact Us
Business

NCLT Initiates Insolvency Proceedings Against Jeypore Sugar Company

By Lawstreet News Network      Feb 28, 2019      0 Comments      2,628 Views
NCLT Initiates Insolvency Proceedings Against Jeypore Sugar Company

The Chennai Bench of National Company Law Tribunal (NCLT) has directed initiation of insolvency proceedings against The Jeypore Sugar Company Ltd.

The Bench was hearing a petition filed by IDBI Bank Ltd. for non-payment of dues to the tune of ₹183.75 crore as on October 1, 2018.

IDBI Bank, in its petition, has contended that the company availed loans to the tune of ₹165.37 crore from the bank in the form of working capital and rupee term loans, among others. On June 30, 2015, the bank classified the loans as non-performing assets (NPA).

As per the petition, the company had offered a one-time settlement proposal, which did not materialise.

The company argued before the Tribunal that the petition should be dismissed on grounds that the debt claim was barred by limitation as the default occurred on June 30, 2015, and whereas the petition was filed on October 24, 2018.

However, the Tribunal rejected the argument and ordered the initiation of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016. It had appointed V. Venkata Sivakumar as interim insolvency professional and also declared a moratorium.



Tags:
National Company Law Tribunal
Share this article:


Lawstreet News Network
Editor
     



Leave a feedback about this




Related Posts
View All

TRENDING NEWS


TOP STORIES


ADVERTISEMENT


Lawstreet Advertisement

Signup for Our Newsletter

Get Exclusive access to members only content by email