The NCLAT authorized withdrawal from the Corporate Insolvency Resolution Process (CIRP) against Kanoria Sugar and General Manufacturing Company.
A two-member bench of the National Company Law Appellate Tribunal (NCLAT) allowed Punjab National Bank (PNB), the financial creditor of Kanoria Sugar, to withdraw its insolvency plea after a settlement with the company.
“We authorize the creditor to withdraw the Section 7 claim filed pursuant to Section 7. Accordingly, the CIRP order initiated as of April 27, 2022 is terminated,” the bench of two said. members consisting of President Justice Ashok Bhushan and Member Naresh Salecha.
Earlier on April 27, the Allahabad Bench of the National Company Law Tribunal (NCLT) admitted the plea filed by public sector lender PNB to initiate insolvency proceedings against Kanoria Sugar and General Manufacturing Company.
PNB had launched the CIRP for dues of Rs 49.65 crore.
The NCLT’s order was challenged before the NCLAT.
The appeal court issued an order on May 23 suspending the constitution of the creditors’ committee (CoC).
Later, an interim application was jointly filed by both parties along with a copy of the Single Settlement Proposal (OTS) dated May 31.
The bank accepted OTS for Rs 40 crore against an outstanding amount of Rs 49.65 crore.
“The two parties have settled the matter between themselves,” observed the NCLAT.
(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Dear reader,
Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.
As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.
Support quality journalism and subscribe to Business Standard.
digital editor
Comments are closed.