Inox Wind’s Insolvency Proceedings Set Aside By NCLAT
The NCLAT quashed insolvency proceedings initiated against Inox Wind.
The National Company Law Appellate Tribunal (NCLAT), on Friday set aside insolvency proceedings against Inox Wind Ltd, on grounds that “principles of natural justice were not followed” in the matter.
Creditor Jeena & Co had not given the debtor Inox Wind sufficient notice prior to admission of the case under the Insolvency and Bankruptcy Code, according to the order posted by the NCLAT on its website.
The appellate tribunal noted that the Rs 57 lakh default amount in question had already been paid to the creditor by Inox Wind.
In a previous order in the insolvency case filed by ICICI Bank against Innoventive Industries Ltd, the appellate tribunal had pointed out that the National Company Law Tribunal (NCLT) did not give adequate notice to the debtor.
The Chandigarh bench of the NCLT had admitted insolvency proceedings against Inox Wind earlier this month and appointed Bhupesh Gupta as the interim resolution professional in the matter. The company then approached the NCLAT pleading that the bankruptcy proceedings initiated be quashed.
In its order on Friday, the appellate tribunal said that Inox Wind will have to pay Gupta a fee for the days he has worked in the company, as determined by the NCLT.
The banking system is currently in the middle of resolving 12 large corporate accounts through the insolvency process, which will determine the fate of about 25 percent of the gross non-performing assets (NPAs) in the banking system.