Bankruptcy court admits insolvency plea against listed firm India Steel Works
National Company Law Tribunal (NCLT) has admitted listed firm India Steel Works Ltd under the insolvency resolution process in an application filed by its operational creditor Stecol International Pvt Ltd. The tribunal has also appointed Vallabh N Sawana as the interim resolution professional (IRP).
India Steel Works has said in its stock exchange filing that it is in the process of filing an appeal at the National Company Law Appellate Tribunal (NCLAT) for urgent relief in the matter.
“This bench hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor (India Steel Works) including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority,” said the division bench of judicial member Reeta Kohli and a technical member Madhu Sinha in its order of May 8.
The tribunal has also restrained the company from ‘transferring, encumbering, alienating or disposing’ of any of its assets. The Stecol International had approached the tribunal after it defaulted on its dues of Rs 2.6 crore.
In this case, Stecol International is in the business of contract manufacturing of various steel products and was desirous of procuring certain stainless steel products. While, India Steel Works (ISWL), which is engaged in the business of steel manufacturing, expressed its interest in manufacturing the steel products sought by the operational creditor Stecol International.
As per the tribunal’s order, the parties agreed in
