NCLT Grants Three Days To Cox & Kings’ Suspended Directors To Submit Records
The National Company Law Tribunal on Monday granted three days to suspended directors of Cox & Kings (India) Ltd. for submitting statutory information and records to the resolution professional.
The resolution professional of the tours and travel company told the tribunal that the former directors and the erstwhile auditor are not submitting statutory information and records, which is making the insolvency process difficult. The Mumbai bench of the NCLT in October 2019 admitted an insolvency application against Cox & Kings after the tour operator defaulted on its debt obligations to the company's financial creditor, Ratan India Finance Ltd.
In November 2019, the tribunal had directed the suspended directors to cooperate with the resolution professional. The NCLT Mumbai has granted time till Thursday to the former directors to cooperate, and in case of failure to do so, the tribunal will lodge a police complaint.
In May and June 2019, Ratan India had approved Rs 70 crore loans to Cox & Kings, of this Rs 30 crore was disbursed by the financial creditor at an interest of 13.5 percent per annum with a maturity date of Aug. 31.
The loans were secured by guarantee deeds extended by the tour operator towards the financial creditor. Ratan India had recalled its loan facility as Cox & Kings defaulted on repaying an installment on the loan amounting to Rs 2.50 crore, which was due for repayment in June. The financial creditor filed an application under Section 7 of the Insolvency and Bankruptcy Code to recover the amount lent to the tour and travel company.