National Company Law Appellate Tribunal Upholds National Company Law Tribunal Order To Liquidate Moser Bael Solar

The National Company Law Tribunal’s (NCLT) order to liquidate Moser Baer Solar Ltd (MBSL) has been upheld by the National Company Law Appellate Tribunal (NCLAT).

The NCLT had ordered the company to go under liquidation on May 30, after the debt-ridden company failed to find any takers within the stipulated 270-day timeframe.

Incidentally, the insolvency process of the company was initiated in November 2017.

Recently, a two-member NCLAT bench passed an order that the company may continue as a going concern to ensure its revival and resolution even during the liquidation process.

Earlier, the company had challenged the NCLT’s order and approached the NCLAT contending that it is eligible for a Rs 270-crore subsidy from the central government and an order of liquidation could affect it. If the central government is informed that it has gone for liquidation, it may not allow subsidies, the company had argued.

It may be noted that on January 15, 2019, the Union Ministry of Electronics and Information Technology had informed the company that the subsidy would not be disbursed.

After that development, the company moved the high court, but the petition was dismissed on February 25, 2019.

Subsequently, the company filed a review petition which ordered the ministry to re-examine its claim for subsidy.