The NCLT Hyderabad delivers a historical order
(Judicial Quest News Service)
HONOURABLE BENCH consisting of Shri. K. Anantha Padmanabha swamy, Member Judicial and Shri. Dr.Binod Kumar Sinha , Member Technical .
All proceedings under the Companies Act, including proceedings relating to arbitration, compromise, arrangements and reconstruction and winding up of companies shall be disposed of by the National Company Law Tribunal. NCLT bench is chaired by a judicial member who is supposed to be retired/Serving High Court Judge and a Technical member who is from Indian Corporate Law Service, ICLS Cadre. The National Company Law Tribunal is the adjudicating authority for insolvency resolution process of companies and limited liability partnerships under the Insolvency and Bankruptcy Code, 2016.
The NLCT Hyderabad delivers a historical order
In the Normal Course of law Corporate Creditors to whom money is owed for supply of goods or services, in respect of genuine and bonafide transactions, and such money is not recoverable, approach the NCLT for the commencement of INSOLVENCY RESOLUTION PROCEEDINGS thru the appointment of INSOLVENCY RESOLUTION PROFESSIONAL of their choice. The NCLT bench looks in to the merits of the case and either directs reconciliation.
Procedure for resolving the same, or goes ahead with commencement of INSOLVENCY RESOLUTION PROCEEDINGS, and there by provides relief to the Corporate Creditors. In our case, Magneto homes pvt. Ltd, Jaipur, being the corporate Creditor approached the Hyderabad bench of NCLT against us by putting up a highly exaggerated and inflated claim of Rs. 1, 07, 26,577, against us. There was a clear intention to mislead the bench with regard to the amount due. We had in our oral hearings and written submissions had clearly pointed out the above to the honorable bench. The said amount was far less, and that too disputed and not genuine. In a rare case, before the NCLT, the said petition under section 9 of the IBC code 2016 was rejected and the Order was passed in favor of the Corporate Debtor that is my client Conclave Infratech pvt Ltd, Rejecting the plea for invocation of section (9) of the IBC code 2016. All the facts relating to the case have been explained in detail in the order of the.
” The Advocate for Respondent Mr. Uma Shanker G. has said that Normally, when operational debts are genuinely due and remain unpaid, the honorable bench at NCLT accepts the plea for commencement of insolvency resolution proceedings. Here the petitioner presented an exaggerated, inflated figure of a disputed amount as being due and the honorable bench rightly dismissed the plea.”.
Read the Judgment here
