The tribunal rejected Era Infra’s objection that since several company petitions had been filed before the Delhi high court with a prayer for winding up the corporate debtor and were pending, no insolvency proceedings could proceed before the tribunal. Photo: iStockphoto
The tribunal rejected Era Infra’s objection that since several company petitions had been filed before the Delhi high court with a prayer for winding up the corporate debtor and were pending, no insolvency proceedings could proceed before the tribunal. Photo: iStockphoto

NCLT to proceed with insolvency proceeding against Era Infra

NCLT decides to move ahead with the insolvency proceedings against Era Infra initiated by Union Bank of India for recovery of Rs681.04 crore

New Delhi: The National Company Law Tribunal on Friday decided to move ahead with insolvency proceedings against Era Infra Engineering Ltd initiated by Union Bank of India for recovery of Rs681.04 crore, along with an overdue external commercial borrowing of $11.97 million, as on 31 May 2017.

“Let all the petitions be listed for hearing before the Principle Bench..", the 30-page NCLT order signed by President M.M Kumar and members R. Varadharajan and Deepa Krishnan reads.

The tribunal rejected Era Infra’s objection that since several company petitions had been filed before the Delhi high court with a prayer for winding up the corporate debtor and were pending, no insolvency proceedings could proceed before the tribunal. However, no official liquidator was appointed in pursuance of the said company petitions by the high court.

“..there is no bar on NCLT to trigger an Insolvency Resolution Process on an application filed under sections 7, 9 &10 if a winding up petition is pending unless an official liquidator has been appointed and a winding up order has been passed.", the order reads.

The matter is listed for further consideration on 28 March.

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