NCLT Admits Application For Castex’s Insolvency Process
NCLT admits an application by SBI to initiate insolvency process against Castex Technologies.
The National Company Law Tribunal has admitted an application by State Bank of India to initiate the corporate insolvency resolution process against iron-cast auto parts maker Castex Technologies Ltd.
The Mumbai bench of the NCLT appointed Dinkar Tiruvannadpuram Venkatsubramanian as an interim resolution professional for the debt resolution process, according to a stock exchange filing.
Insolvency proceedings against Castex, formerly known as Amtek India, were initiated by SBI and its subsidiaries for defaulting on loans worth over Rs 572 crore, according to a copy of the petition filed on the exchanges.
Once a case is admitted by the NCLT, there is a 180-day timeline to decide on a resolution plan, though 90 days can be given in addition. If a plan is not decided till then, the company goes into liquidation.