NCLT recalls order initiating insolvency proceedings against VA Tech Wabag

By: | Published: October 14, 2017 4:46 AM

The Chennai bench of the National Company Law Tribunal (NCLT) on Friday recalled its earlier order initiating the corporate insolvency resolution process against VA Tech Wabag, the pure play water technology major.

NCLT, VA Tech Wabag, Consolidated Construction ConsortiumThe NCLT has recalled the order following an agreement between VA Tech Wabag and Consolidated Construction Consortium.

The Chennai bench of the National Company Law Tribunal (NCLT) on Friday recalled its earlier order initiating the corporate insolvency resolution process against VA Tech Wabag, the pure play water technology major.

The NCLT has recalled the order following an agreement between VA Tech Wabag and Consolidated Construction Consortium (CCCL) and submissions made by the interim resolution professional (IRP) while dismissing the petition filed by CCCL for insolvency as withdrawn, post settlement of dues.

Consequent to the order, the IRP has been relieved of his assignment and powers and management of the company have been restored to its board of directors with immediate effect. The NCLT had ordered commencement of the corporate insolvency resolution process against Chennai-headquartered VA Tech Wabag on October 6, accepting the insolvency process initiated by Consolidated Construction Consortium (CCCL), a city-based player in the construction and contracts of civil sector projects.

The NCLT had also appointed Pathukasahasram Reghunathan Raman as the IRP to carry out the insolvency proceedings within the stipulated time of 180 days. Both the parties had a contractual dispute in terms of payment amounting to Rs 1.5 crore.

VA Tech Wabag had moved the National Company Law Appellate Tribunal (NCLAT) against the Chennai NCLT order that slapped the corporate insolvency resolution process on the company. When the matter came up on Friday, Wabag pleaded that order for insolvency be withdrawn as the company was willing to pay full dues with interest to CCCL in front of the adjudicating authority.

The company handed over two demand drafts amounting to Rs 2.25 crore to the counsel for CCCL as full and final payment of the claim. Subsequently, the CCCL counsel said they will relinquish all the claims and as well as undertake to immediately withdraw the proceedings before the bench.

Wabag has also submitted that the company will withdraw the appeal filed before the NCLAT.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition