SC stays NCLAT's order initiating insolvency proceedings against Purvanchal Vidyut Vitran Nigam
Supreme Court on Friday stayed the National Company Law Appellate Tribunal’s order that initiated insolvency proceedings against Uttar Pradesh government-owned Purvanchal Vidyut Vitran Nigam.
A vacation Bench of Justice Sanjay Kumar and Justice Augustine George Masish also issued a notice to its operational creditor S.R.V. Techno Engineering and posted the matter for further hearing on July 26.
S.R.V. Techno Engineering had in 2019 moved the National Company Law Tribunal, Allahabad bench, seeking to initiate insolvency proceedings against Purvanchal for failing to pay debt of Rs 4.43 crore including interest. Thereafter, S.R.V also filed arbitration proceedings against the UP firm Nigam in 2022 where an arbitrator awarded Rs 1.73 crore to it in 2023.
In the tribunal in 2023, S.R.V said that it erred in not mentioning the date of default in its plea and subsequently filed an application where the correct date was mentioned. It contended that it found discrepancies in its account due to non-consideration of some payments received and according to which the total outstanding amount was Rs 1.76 crore and not Rs 4.43 crore as claimed earlier.
However, the tribunal rejected S.R.V’s insolvency petition and held that it was deemed to have filed valid petition only in 2023 and there was a pre-existing dispute before S.R.V. filed the insolvency plea.
Challenging this, S.R.V. moved the National Company Law Appellate Tribunal, which on April 23 set aside the NCLT's order, treating the case ex-parte.
Aggrieved by the
