{"id":132509,"date":"2024-09-11T19:10:12","date_gmt":"2024-09-11T19:10:12","guid":{"rendered":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/09\/11\/bankruptcy-court-admits-essel-infraprojects-under-insolvency-resolution-process\/"},"modified":"2024-09-11T19:10:12","modified_gmt":"2024-09-11T19:10:12","slug":"bankruptcy-court-admits-essel-infraprojects-under-insolvency-resolution-process","status":"publish","type":"post","link":"https:\/\/news.talkwithrattan.com\/index.php\/2024\/09\/11\/bankruptcy-court-admits-essel-infraprojects-under-insolvency-resolution-process\/","title":{"rendered":"Bankruptcy court admits Essel Infraprojects under insolvency resolution process"},"content":{"rendered":"
\"Bankruptcy<\/div>\n
A bankruptcy court Wednesday admitted Jammu and Kashmir Bank<\/a>\u2019s application to initiate insolvency proceedings against Essel Infraprojects Ltd<\/a>, a company promoted by media baron Subhash Chandra<\/a>, over what the lender claimed was an ‘established case’ of default. <\/p>\n

The Mumbai<\/a> bench of the National Company Law Tribunal<\/a> (NCLT), while admitting the company, has also appointed Hemant J. Mehta as interim resolution professional (IRP).<\/p>\n

The private-sector lender had approached the tribunal after the Essel Group entity defaulted on its dues of Rs 87.43 crore. <\/p>\n

\u201cThe financial debt is due and payable by the corporate debtor (Essel Infraprojects) as on the date of filing the present company petition,\u201d observed the division bench of judicial member Reeta Kohli and technical member Madhu Sinha. \u201cFurther, there is admission of default and outstanding liability by the corporate debtor in various correspondences annexed to the company petition,\u201d noted the order further. <\/p>\n

In this case, Jammu and Kashmir Bank had sanctioned a loan of about Rs 200 crore to Pan India Utilities Distribution Co<\/a> in December 2013, out of which Rs 70 crore remained unpaid to date. Essel Infraprojects is a corporate guarantor of this loan. <\/p>\n


The lender argued that the company has not disputed the existence of the debt or the fact that it is in default. Countering this, Essel Infraprojects argued that it entered into a scheme of demerger, where a specific asset (Gorai land parcel in the northern suburb of Mumbai) and its related project were transferred to Essel Urban Infraprojects Ltd<\/a>. The rest of the company\u2019s assets and business remained with the company. The company further argued that in April 2014, Essel Urban<\/a> Infraprojects Ltd merged with Pan India Infraprojects Pvt Ltd. As a result, all assets and liabilities of Essel Urban, including the Gorai Land, were transferred to Pan India Infraprojects Pvt Ltd. <\/p>\n

Mumbai-based Essel Infraprojects argued that due to these schemes, all its liabilities, including the liability under a corporate guarantee, have been transferred to Essel Urban Infraprojects Ltd and then to Pan India Infraprojects Pvt Ltd. Therefore, it believes it no longer holds any liability for the debt.<\/p>\n

However, setting aside the company\u2019s arguments, the tribunal admitted the company for insolvency resolution process with the observation that the debt and default stand established and there is no reason to deny the admission of the petition. <\/p>\n

In the recent past, Subhash Chandra-promoted Essel Group\u2019s several affiliates, including listed firms such as Siti Networks Ltd<\/a>, Zee Learn Ltd<\/a>, Shirpur Gold Refinery Ltd<\/a> as well as Primat Infrapower & Multiventures, are also facing insolvency resolutions.
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Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A bankruptcy court Wednesday admitted Jammu and Kashmir Bank\u2019s application to initiate insolvency proceedings against Essel Infraprojects Ltd, a company promoted by media baron Subhash Chandra, over what the lender claimed was an ‘established case’ of default. The Mumbai bench of the National Company Law Tribunal (NCLT), while admitting the company, has also appointed Hemant […]<\/p>\n","protected":false},"author":2,"featured_media":132510,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","fifu_image_url":"https:\/\/img.etimg.com\/photo\/msid-113269842,imgsize-32956.cms","fifu_image_alt":"","footnotes":""},"categories":[602],"tags":[614,10161,1625,39574,106407,106405,106401,106410,23430,106409,106406,352,56170,106404,7111,10100,106408,106403,9135,106402],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/132509"}],"collection":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/comments?post=132509"}],"version-history":[{"count":1,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/132509\/revisions"}],"predecessor-version":[{"id":132511,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/posts\/132509\/revisions\/132511"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media\/132510"}],"wp:attachment":[{"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/media?parent=132509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/categories?post=132509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/news.talkwithrattan.com\/index.php\/wp-json\/wp\/v2\/tags?post=132509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}