It is a huge relief for  Mumbai-based laminates maker Shirdi Industries Ltd. It  has won the trust from National Company Law Tribunal (NCLT) which passed an order recently that allowed the company to be handed over to the same promoters for implementing the resolution plan.

Claiming to become the first case in this regard, Shirdi Industries has said that the landmark judgement of the tribunal will certainly help them and other promoters who are fighting to defend their companies. The court handed over the company to the existing management on December 12, and the resolution plan of the company got implemented from December 13 by the management.

However, promoter of Shirdi Industries Rakesh Agarwal said, “The trust shown by NCLT through its judgment has given us immense strength and confidence that will definitely help us in bringing positive growth for the company. The message sent out by NCLT initiative is not only encouraging but it’s an indication of a business supporting attitude of the Government.”

“The company has several facilities which are presently not been utilised at optimum level. We are not looking for long-term plan at present and are focused to improve the operational facts and optimisation of capacity utilisation. We will evaluate further plan only after stabilisation and optimisation,” he added.

This will be the first case where the Mumbai NCLT court has ruled in contravention of the NPA Ordinance of November 23, where the Government debarred existing promoters from bidding for their own company if the loan is a non-performing asset (NPA) for more than 12 months.

The court said it made an exception because the resolution plan was approved by 99 per cent of the lenders long before the NPA Ordinance was announced. The present resolution plan has been supported by nearly 100 per cent financial creditors.

The new provisions in insolvency code introduced on November 23, 2017 by way of ordinance have been debated a lot by banks also. In the present case, the resolution plan had been already approved by COC and submitted for approval before NCLT.

As carried in TP

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