Mumbai: The National Company Law Tribunal (NCLT), Mumbai bench recently initiated corporate insolvency resolution process (CIRP) against Vijay Group Realty LLP for failing to pay a debt of around Rs one crore to a Thane-based financial creditor.
The bench of H V Subba Rao, judicial member and Chandra Bhan Singh, technical member, allowed the petition filed by Bhanu Navin Nisar seeking to initiate CIRP against Vijay Group Realty LLP, alleging that the debtor committed default in making payment of Rs One crore along with an interest of 18 per cent to her. She claimed that the payments have been outstanding since August 2019.
The plea claimed that Nisar had given a loan to the company, having its office at Churchgate, in October 2014.
Before the NCLT bench led by Rao, the company didn't file its say in the matter.
"The Corporate Debtor (Vijay Group Realty) did not choose to file any reply contesting this company petition despite taking so many adjournments. Therefore, the Corporate Debtor’s right to file reply was forfeited," the bench noted in its August 4 orders.
The bench further took into consideration, a communication made by the company to Nisar in 2016 confirming the outstanding amounts.
"Since the Corporate Debtor did not file any reply the claim of Nisar remains unchallenged," the bench said, adding, "In this view, there are no valid grounds warranting the rejection of this Company Petition as the debt and default are clearly established and the debt is also within limitation," the bench noted, while issuing the CIRP.
It also appointed one Anish Gupta as the Insolvency Professional to oversee the functioning of the Company.
"We hereby prohibits the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority; transferring, encumbering, alienating or disposing of by the corporate debtor any of its assets or any legal right or beneficial interest therein; any action to foreclose, recover or enforce any security interest created by the corporate debtor in respect of its property; the recovery of any property by an owner or lessor where such property is occupied by or in the possession of the Corporate Debtor," the bench ordered.
