The National Company Law Tribunal (NCLT) in New Delhi on Tuesday sought clarification from the counsel for Union Bank of India whether the insolvency application against Era Infra is maintainable since several winding up petitions against the company are pending before the High Court. The judge has also adjourned the case for hearing on July 25.
“Era Infra filed reply/objections apprising the NCLT that there are several winding up petitions filed by third parties against the company, which are pending adjudication before the High Court of Delhi,” Manoj K Singh, founding partner, Singh & Associates – counsel for Era Infra.
He added that if the winding up petitions are admitted by the High Court, the application under Section 7 of the Insolvency and Bankruptcy Code filed by the bank may become infructous.
The RBI, had on June 13, had asked banks to refer a dozen troubled companies — with a combined debt of close to Rs 2.4 lakh crore — to the NCLT.
The 12 accounts, identified by the central bank are those to which banks have an exposure of more than Rs 5,000 crore, more than 60% of which has been recognised as npas. Once these cases are with the NCLT the lenders need to set up a committee of creditors that will come up with a plan on how the asset will be tackled. If the committee is unable to find a solution within 180 days — this can be extended to 270 days — the borrowing entity will go into liquidation.