NCLAT Chennai Stays Corporate Insolvency Resolution Process Initiated Against Tata Projects Ltd

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

The NCLAT comprising Justice M. Venugopal and Kanthi Narahari also directed the IRP to file an application for withdrawal of the Corporate Insolvency Resolution Process under Section 12A of the Code coupled with Regulation 30A of the Insolvency & Bankruptcy Board of India (Insolvency Resolution Process for Corporate Person) Regulation, 2016 before the Adjudicating Authority within three days. 

In the event of such application being filed by the Interim Resolution Professional, then the Adjudicating Authority'was directed to dispose of the same within three days thereafter without fail. 

"Till the disposal of the 12 A Withdrawal of 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," reads the order.

The National Company Law Tribunal of Hyderabad had recently initiated the process against Tata Projects for its failure to pay back legally-established dues to Nexo Industries Pvt Ltd.

However, during the appeal proceedings, it was stated that the subject matter had been resolved between the parties. Hence the appeal was dismissed as withdrawn and the order of the Hyderabad NCLT was stayed. 

Senior Advocate Gopal Jain appeared for the appellant while Advocate Mayur Mundra appeared for the respodent in the matter. Krishna Komaravolu was the IRP in person.

Case Title: Vinayak K. Deshpande v. Nexo Industries P Ltd & Anr.

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