The National Company Law Appellate Tribunal, Delhi, has stayed the liquidation process of the debt-strapped Hyderabad-based construction and infrastructure company IVRCL Ltd.
This development follows a Company Appeal Insolvency petition moved by First Global Finance Ltd in the NCLAT, seeking stay of the liquidation process on the ground that during the resolution process under the Insolvency and Bankruptcy Code, 2016 at the National Company Law Tribunal, Hyderabad, its resolution plan was not considered.
A Bench of Justice SK Mukhopadhyaya, Chairperson, Justice AIS Cheema, Member Judicial, and Kanthi Narahari, Member Technical, in its order, said: “The order of liquidation will be subject to the decision of this appeal. The liquidator will not sell or transfer or alienate moveable or immoveable property of the corporate debtor nor create any third-party encumbrance on the same, without prior approvals of the Appellate Tribunal.”
No grounds for rejection
First Global took up the matter with the NCLAT, stating that the resolution plan submitted by it was not considered in its proper perspective and the order of Liquidation under Section 33 of the IBC was passed by the adjudicating authority.
It also contended that the appellant (First Global) deposited total earnest money of Rs. 5 crore and fulfilled the minimum capacity of more than Rs. 500 crore, but the resolution plan submitted by it was rejected both by the corporate debtor and the adjudicating authority without any ground, and the order of liquidation was passed.
The liquidator was directed to ensure that IVRCL remains a going concern and that any developments would be based in accordance with the law and proceeded with the terms of the NCLAT.
Following the NCLT-Hyderabad order to liquidate IVRCL as a going concern, as there was no way of finding a resolution, the official liquidator Sutanu Sinha, who was appointed by the NCLT, initiated the liquidation process.
The IRP had taken the process through the insolvency proceedings as well.
The shares of IVRCL have been suspended from trading at BSE.
The liquidator, who had invited EoI during the liquidation process, twice announced the decision to postpone the process. The last date for filing was slated for October 29 and date for e-auction was fixed for October 30.
First Global Finance petitioned the NCLAT, stating that the resolution plan submitted by it was not considered by NCLT, Hyderabad