NCLAT asks RBI to respond to Srei ex-promoter co’s petition
NEW DELHI : The National Company Law Appellate Tribunal (NCLAT) on Wednesday asked the Reserve Bank of India (RBI) to respond in three weeks to a petition filed by Adisri Commercial, the former promoter of Srei Infrastructure Finance, against an earlier order issued by the tribunal. On 8 October, 2021, the Kolkata bench of the National Company Law Tribunal (NCLT) had admitted Srei into the corporate insolvency process, and an NCLAT bench In December 2022 rejected Adisri’s plea challenging the NCLT order.
Senior advocate Ranjit Kumar, on behalf of Adisri Commercial, argued that its initial appeal was dismissed based on a delay in the filing process. He said the case wasn’t evaluated on merits, as no notice was given, and the company’s plea was swiftly dismissed after admission, which he said ‘violates natural justice.’ Kumar insisted the company does not owe any debt as claimed by the RBI, and it was not given the opportunity to demonstrate the absence of debt.
Kumar also sought leniency due to the covid-19 pandemic’s impact on the filing process, adding this oversight shouldn’t be grounds for dismissing its petition. He said insolvency rules allow the tribunal to recall the dismissed appeal and address jurisdictional concerns.
In response, Gopal Jain, senior counsel for the RBI, contended that Adisri Commercial’s actions showed a lack of seriousness and commitment throughout the legal process. Jain argued that recalling the dismissed appeal would disrupt the Corporate Insolvency Resolution Process (CIRP), reset the timeline and create a dangerous precedent.
The RBI counsel mentioned that even the Supreme Court had dismissed the appeal, raising doubts about the possibility of recalling the order. In October 2021, RBI had
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