NCLAT stays insolvency process of RP Infosystems | Business News,The Indian Express

Clipped from: https://indianexpress.com/article/business/nclat-stays-insolvency-process-of-rp-infosystems-7161533/

In its judgment, the NCLAT said that since the insolvency petition moved by SBI in 2019, seven years after RP Infosystems’ accounts were declared non-performing assets in 2013.

In 2020, the Kolkata bench of the National Company Law Tribunal (NCLT) had admitted the insolvency petition against the company based on the application moved by SBI.

The National Company Law Appellate Tribunal (NCLAT) has set aside an order of insolvency against Kolkata-based RP Infosystems as the plea filed by the financial creditor, State Bank of India (SBI), was beyond the limitation period of three years.

In its judgment, the NCLAT said that since the insolvency petition moved by SBI in 2019, seven years after RP Infosystems’ accounts were declared non-performing assets in 2013. In 2020, the Kolkata bench of the National Company Law Tribunal (NCLT) had admitted the insolvency petition against the company based on the application moved by SBI.

In its judgment, delivered last Wednesday and made available later, the NCLAT set aside the NCLT’s order and held that the firm was “allowed to function independently through its Board of Directors with immediate effect”.

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