Lawstreet Journal

National Company Law Appellate Tribunal Upholds the Order Given By National Company Law Tribunal: No Insolvency Proceedings Against Tata Chemicals

Lawstreet Journal 21 Aug 2020 1:22am

Image courtesy: Lawstreet Journal Judiciary National Company Law Appellate Tribunal Upholds the Order Given By National Company Law Tribunal: No Insolvency Proceedings Against Tata Chemicals

The National Company Law Appellate Tribunal (NCLAT) dismissed an appeal filed by Allied Silica Limited questioning the National Company Law Tribunal (NCLT) Mumbai Bench's structure that had dismissed the Insolvency application for initiating the Corporate Insolvency Resolution Process against Tata Chemicals Limited under Section 9 of the Insolvency and Bankruptcy Code, 2016. 

The Three-Judges bench consisting of Acting Chairperson Justice Bansi Lal Bhat, Justice V. P. Singh Member (Technical) and Justice Shreesha Merla Member (Technical) while dismissing Allied Silica's ('Operational Creditor') claim for Rs 68.44 crore held that- 

"The Ld. adjudicating authority has rightly dismissed the application filed under Section 9 of the law. Thus, we do not find any reason to interfere with the impugned order. There is no substance in the appeal which is accordingly dismissed. 

In 2018, Tata Chemicals had gone into a Business Transfer Agreement ('BTA') for the exchange of Operational Creditor's silica business on a Slump Sale reason for an amount of Rs 123 crore.

The operational Creditor had contended that the Tata Group had moved just a sum of Rs. 65 Crores and the balance amount of Rs 58 crores remained unpaid. By default, the interest added up to Rs. 10.44 Crores, and in this manner a sum of Rs. 68 Crores were expected. They further contended that post-transfer of the undertaking, the parties had commonly consented to proceed with their respective rights and commitments to set out the pipeline, preliminary attempt, and good activity, and so on with the extra extent of work with other tranche installments,… Continue Reading...


Tagged: Tata Chemicals   National Company Law Appellate Tribunal  
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