Delhi Bench Of National Company Law Appellate Tribunal Stays Liquidation Process Of Infrastructure Firm IVRCL Ltd

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The liquidation process of the debt-strapped Hyderabad-based construction and infrastructure company IVRCL Ltd has been stayed by the Delhi bench of the National Company Law Appellate Tribunal (NCLAT).

The stay was sought by First Global Finance Ltd on the ground that during the resolution process under the Insolvency and Bankruptcy Code (IBC), 2016 at the National Company Law Tribunal (NCLT), Hyderabad, its resolution plan was not considered.

Later, First Global moved a Company Appeal Insolvency petition at 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.

The NCLAT 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. Yet the resolution plan submitted by First Global 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 dealt with as per the terms of the NCLAT.

After the Hyderabad bench of the NCLT ordered liquidation of IVRCL as a going concern, because there was no way of finding a resolution, the official liquidator Sutanu Sinha, who was appointed by the NCLT, initiated the liquidation process.

The Interim Resolution Professional (IRP) had taken the process through the insolvency proceedings as well.

The liquidator, who had invited Expression of Interest (EoI) during the liquidation process, twice announced the decision to postpone the process. The last date for filing was slated for October 29 and the date for electronic auction was fixed for October 30.