Mumbai: The country’s first bankruptcy case against Innoventive Industries Ltd was admitted in the National Company Law Tribunal (NCLT) on Tuesday, two people aware of the development said.
The court observed that the company cannot seek protection under the Maharashtra Industrial Development Act as the insolvency regulation is a special Act, said one of the two people. Both spoke on condition of anonymity.
ICICI Bank Ltd had filed an application against the Pune-based steel products maker in NCLT last month. This is the first case in India filed under the Insolvency and Bankruptcy Code, 2016, and it will provide a primer on how the new law will help tackle the banking system’s nearly Rs6.7 trillion of bad loans.