NCLAT stays insolvency resolution against Tata Projects

NCLAT stays insolvency resolution against Tata Projects

It was informed that the warring parties had resolved the dispute amicably

The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has stayed the order initiating the Corporate Insolvency Resolution Process against Tata Projects Limited on being informed that the parties had entered into a settlement agreement.

The bench comprising Justice M Venugopal and Justice Kanthi Narahari also directed the Interim Resolution Professional (IRP) to file an application for the withdrawal of the Corporate Insolvency Resolution Process under the Code. The adjudicating authority was also directed to dispose it of within three days.

The court's order read, "Till the disposal of the withdrawal of the application, the implementation of the impugned order shall remain stayed. In the interregnum, there is no impediment for the board of directors of the corporate debtor to function independently."

Recently, NCLAT, Hyderabad had initiated the process against Tata Projects for its failure to pay back the legally established dues to Nexo Industries. However, during the appeal, it was stated that the matter had been resolved between the warring parties.