NCLAT Authorizes Withdrawal of Insolvency Proceedings Against Kanoria Sugar
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.
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