Mumbai: The National Company Law Tribunal’s (NCLT) larger bench on Friday sought more time to hear arguments and decide on whether the Insolvency and Bankruptcy Code (IBC) would apply in the case of Era Infra Engineering Ltd vs Union Bank of India, when several winding up petitions have been filed by creditors in the Delhi High Court.
The larger bench, to which the case was referred by NCLT president M.M. Kumar last month, has set 16 October as the next date for hearing arguments.
The lawyer for Union Bank of India argued that the case should be heard under IBC where a period of 180 days, further extendable by 90 days, is provided to revive the company, unlike in the high court where an official or provisional liquidator is appointed.
In the case of Era Infra, an official liquidator has not been appointed yet by the High Court.
The lawyer referred to cases like Alcon Laboratories Pvt Ltd vs Vasan Healthcare where NCLT’s Chennai Bench allowed insolvency proceedings against Vasan despite winding up petitions filed against it in the Madras High Court and Alok Industries vs State Bank of India (SBI), in which NCLT’s Ahmedabad bench admitted an insolvency petition against Alok Industries, despite winding up petitions.
“We want resolution at the earliest in order to explore the possibility of reviving the company as it will benefit all stakeholders involved," said Nesar Ahmed, the lawyer representing Union bank.
Eighteen winding-up petitions filed by various operational and financial creditors against Era Infra Engineering are pending before the Delhi High Court. Union Bank of India is not among them. Era Infra Engineering owes more than Rs10,000 crore to its creditors.
Era is one of the 12 bad loan accounts that have been directed by the central bank to be referred under IBC.