NCLT admits a petition for insolvency plea against NTC

28 May 2022, Mumbai:

National Textile Corporation defaulted in its payment of dues to an operational creditor, leading to the NCLT admitting the creditor's petition for initiating corporate insolvency resolution proceedings.

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The National Company Law Tribunal (NCLT) on May 27 admitted a petition for initiating an insolvency resolution process against National Textile Corporation Ltd (NTC) under the Insolvency and Bankruptcy Code (IBC).

The Delhi bench of the NCLT has appointed Amit Talwar as the Interim Resolution Professional (IRP) and the corporation will be placed under a moratorium as per the provisions of the IBC.

The petition for initiating insolvency proceedings was filed by a private company namely Hero Solar Energy after National Textile Corporation allegedly defaulted on its payment.

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The applicant company was engaged in providing services for solar rooftop power projects. These services were provided under two contracts following which NTC allegedly defaulted on its payments.

The initial engagement between the two entities dates back to 2016 as per the details of transactions furnished before the NCLT. In 2019, Hero Solar sent a demand notice to NTC seeking the pending dues.

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CREDITS: Money Control (The news article has not been edited by DFU Publications staff)