New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Friday set aside the corporate insolvency resolution process (CIRP) against Sarda Agro Oils.
The Hyderabad bench of the National Company Law Tribunal (NCLT) had last year admitted a plea for insolvency proceeding against the company.
The appellate tribunal said that the lender filed the claims three years after declaring the account as a non-performing asset (NPA).
Allahabad Bank had submitted that the corporate debtor was sanctioned cash credit facility of Rs 20 crore, term loan of Rs 14 crore, and Letter of Credit of Rs 65 crore by way of a Common Sanction Letter dated May 31, 2012. It was also submitted that the appellant became irregular in repayment and consequently the account was declared an NPA on September 30, 2015.
“We are of the firm view that the determining factor is the three years period from the date of default/NPA,” said the order by a three-judge bench.
“In view of the above, this Appeal is allowed and we set aside the impugned order dated 27.08.2019 passed by the Adjudicating Authority (NCLT, Hyderabad Bench, Hyderabad),” it added.
It added that, consequently, orders passed by the NCLT ranging from the appointing of resolution professional (RP), declaring a moratorium, freezing of accounts, among others, and all consequential action was taken by the RP including advertisement publication are declared illegal and set aside.
The adjudicating authority will now close the CIRP proceedings and fix the fee of RP and the corporate debtor will pay the fees of RP and other costs incurred by him, the order said.
