NCLAT seeks RBI response on plea of former promoter of Srei Infra Finance

livemint.com:

RBI) to submit in three weeks their response on a plea by Adisri Commercial, the former promoter of Srei Infrastructure Finance, against an earlier NCLAT order. The NCLAT had rejected an earlier plea by the company challenging the insolvency order passed by the Kolkata bench of National Company Law Tribunal (NCLT) on 8 October 2021. In their plea, the promoters had submitted that substantial injustice was caused to Srei and its shareholders by the Kolkata NCLT’s October order which admitted the company into insolvency.

This was done without serving notice to the company or its promoters as required under law. The matter will be next heard on 25 September. During today's hearing, senior advocate Ranjit Kumar, on behalf of Adisri Commercial, argued that the initial appeal was dismissed due to delay in filing process rather than the merit of the case.

Kumar emphasised the companies don't owe any debt as alleged by the RBI and they weren't afforded the opportunity to demonstrate the lack of debt. Kumar also requested leniency due to the pandemic's impact on the filing process, asserting that this oversight shouldn't be grounds for petition dismissal. He cited the 2019 Insolvency and Bankruptcy Rules, stating that the Tribunal could 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. According to the RBI, this re-filing of the appeal had been rejected by both the NCLAT and the Supreme Court. Jain argued that recalling the dismissed appeal would disrupt the Corporate Insolvency Resolution Process (CIRP), resetting the timeline and creating a