Insolvency Proceedings Stayed against Nissan and Renault, Were Initiated Before NCLT

Published on 05 Feb 2018 by Tushar

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The first bench of Madras High Court, comprising Chief Justice Indira Banerjee and Justice Abdul Quddhose, has stayed the insolvency proceedings against car makers Nissan Motor India and Renault Nissan Automotive India before the National Company Law Tribunal (NCLT).

The issue stems from a winding up petition, which was moved by SRL Advisors, a firm which was engaged by the petitioners, Nissan and Renault, for finance, tax and accounting services.

SRL’s services were later terminated due to frauds in their dealings. While the termination letter was not challenged by SRL, a winding up petition for unpaid dues was moved in the Madras High Court. Allegations by SRL during the High Court proceedings were  mala fide, contend the petitioners.

The winding up proceedings were subsequently transferred to the NCLT to be dealt as an application under provisions of the Insolvency and Bankruptcy Code, 2016 (IBC). The transfer of this winding up petition to the NCLT  was a consequence of  Rule 5 of the Companies (Transfer of Pending Proceedings) Rules, 2016 read along with the Companies (Transfer of Pending Proceedings) Second Amendment Rules, 2016 (Transfer Rules).

Source: BarandBench


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