NCLAT Quashes Insolvency Proceedings Against Bharat Road Network
The National Company Law Appellate Tribunal has set aside insolvency proceedings initiated against Bharat Road Network Ltd., and directed the National Company Law Tribunal -Kolkata bench to close the matter.
A three-member NCLAT bench headed by Chairman Justice SJ Mukhopadhaya observed that BRNL has settled its dues with its financial creditor Religare Finvest.
The appellate tribunal also observed that Committee of Creditors was not formed and promoters have cleared the amount claimed by the financial creditor.
"Taking into consideration the fact that the CoC has not yet been constituted and the parties have settled the matter, we set aside the impugned order dated Aug. 28, 2019 and dismiss the application under Section 7 of the Insolvency and Bankruptcy Code filed by Religare Finvest," the NCLAT said.
"The Adjudicating Authority (NCLT) will now close the company Petition," it added.
The appellate tribunal also set aside the direction passed by the NCLT to appoint an Interim Resolution Professional declaring moratorium against the lenders of the company.
Bharat Road Network is a build operate transfer company based in Kolkata. It has a project portfolio consisting of six BOT projects.
The NCLAT also observed that as the IRP has functioned since about 10 days, hence, it directed the company to pay Rs 1.50 lakh as fees and cost.
Challenging the NCLT order before the NCLAT, BRNL had submitted that it had requested tribunal to defer the pronouncement of order as it was willing to pay the total debt of Religare Finvest.
However, without giving such opportunity, the NCLT passed the order on Aug. 28, directing to initiate insolvency and this was challenged before the NCLAT by its Managing Director and Shareholder Bajrang Choudhary.