The National Company Law Tribunal’s (NCLT) principal bench on Monday did not take up the Central Bank of India’s insolvency plea against Moser Baer Solar (MBSL) as one of the judges recused himself from hearing the case. The matter is now slated to come up for hearing before a separate bench on September 28. Last month, the bank had sought insolvency proceedings against the solar panel manufacturer under under Section 7 of the Insolvency and Bankruptcy Code (IBC). Moser Baer has debt of around Rs 1,000 crore at present and it owes Central Bank a little less than Rs 100 crore.
The counsel appearing on behalf of the public sector lender told FE that Justice R Varadharajan recused himself for personal reasons. Moser Baer had earlier requested public sector lender Central Bank of India to defer its loan repayment schedule and allow the company to run on ‘going concern’ basis. Gross debt of MBSL, a subsidiary of Moser Baer India, stood at Rs 772 crore in FY13 (the latest available figure) and it had reported a net loss of Rs 207 crore on revenues of Rs 226 crore in the same period, Capitaline data showed. Once the petition is admitted, the NCLT would appoint an insolvency resolution professional (IRP), who, along with a committee of creditors (CoC), will work on a resolution plan. Powers of the board of directors will also stand suspended with the appointment of the IRP.