Supreme Court dismisses appeal against ND Art's insolvency
Naina Desai, widow of late art director Nitin Desai, seeking a review of the National Company Law Appellate Tribunal (NCLAT) order allowing bankruptcy proceedings against their company. Nitin Desai had been found dead in his Karjat studio on August 2, a day after the NCLAT dismissed his plea against initiation of insolvency proceedings, prompting calls for an investigation.
“We do not find any good ground and reason to interfere with the impugned judgement and hence the appeal is dismissed,” a two-judge bench of justices Sanjiv Khanna and SVN Bhatti said in a short order Friday.
The apex court's dismissal clears the ground for recovery proceedings against ND's Art World Pvt Ltd, the company promoted by Nitin and Naina Desai, which owes Edelweiss Asset Reconstruction Co.
close to Rs 300 crore in principal, interest and other dues.
“The recovery proceedings, which were already underway, though delayed, will now continue. The case is already in the NCLT and will now resume its normal course,” said a person aware of the process.
The Mumbai bench of the NCLT had commenced insolvency proceedings against ND’s Art World in July, almost a year after CFM ARC had approached the court to recover its dues.
But in between the application being filed and getting admitted, CFM sold the loans to Edelweiss ARC, which is now pursuing the matter in court.
The case came into the limelight after BJP MLA Ashish Shelar raised the issue in the Maharashtra assembly through a point of order and demanded an investigation. Deputy chief minister Devendra Fadnavis had also promised a thorough probe.
A first information report (FIR) alleging abetment of suicide was filed against four Edelweiss Group officials including RK Bansal, CEO of Edelweiss ARC,
