NCLT refuses to initiate insolvency proceedings against Shakti Bhog Foods
New Delhi: The National Company Law Tribunal (NCLT) on Thursday refused to initiate insolvency proceedings against Shakti Bhog Foods Ltd to recover over Rs2,045 crore since it’s already undergoing liquidation.
The State Bank of India’s insolvency application was rejected on the ground that no application under Sections 7, 9 & 10 of the Insolvency and Bankruptcy Code, 2015 could be maintainable in case a liquidation order had been passed in respect of the corporate debtor in a winding-up proceeding either by the high court or the tribunal.
Shakti Bhog Foods Limited is undergoing liquidation under an 18 January order of the Delhi high court.
“The necessity of going into the merit of the claim made by the petitioner is obviated against the Corporate Debtor as the Hon’ble Delhi High Court have admitted Company Petition namely CFSIT, Inc v. Shakti Bhog Foods Limited, Company Petition No. 978/2015 vide order dated 18.01.2018,” the order reads.
The three-page NCLT order, however, clarified that SBI would be entitled to file its claim before the official liquidator.
SBI had filed an insolvency application against Shakti Bhog Foods on 10 January. The company features in the Reserve Bank of India’s second defaulter list of August 2017.