Dadheech Infra case: NCLAT upholds insolvency proceedings; flags delay by NCLT in pronouncing verdict

economictimes.indiatimes.com:

NCLT order allowing the initiation of insolvency resolution proceedings against Dadheech Infrastructures. While upholding the National Company Law Tribunal's ruling in the case, the NCLAT also flagged that «unreasonable and unexplained delays in delivering verdicts are not desirable». The NCLT had reserved its order in December 2022 and pronounced the order only in June this year.

The Kolkata bench of the National Company Law Tribunal (NCLT) in June this year allowed initiating Corporate Insolvency Resolution Process (CIRP) against Dadheech Infrastructures on a plea filed by SREI Equipment Finance, which itself is undergoing CIRP. The decision of the NCLT was challenged by way of a petition by Sanjeev Kumar Sharma, who was a director on the now-suspended board of Dadheech Infrastructures. A two-member NCLAT bench said it was satisfied with the findings recorded by the Kolkata Bench of the National Company Law Tribunal (NCLT) that debt and default above the threshold limit had been established.

There is sufficient reason for admission of the main petition and admitting Dadheech Infrastructures into the rigours of CIRP, said the appellate tribunal. Since 2007, Dadheech Infrastructures had a business relationship with SREI Equipment Finance, which was admitted under CIRP on October 08, 2021. Claiming that an amount of Rs 131.35 crore was due on August 12, 2021, SREI Equipment Finance had filed the petition seeking CIRP against the company.