Automobile components hang from a rack at an auto parts factory (Photographer: Marlene Awaad/Bloomberg)  

NCLT Admits Application For Castex’s Insolvency Process

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.