This case involves a reference to a three-member bench of the National Company Law Tribunal (NCLT) to address conflicting views among coordinate benches regarding the interplay between winding-up petitions pending before High Courts and the initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The reference arises from several cases, including Union Bank of India v. Era Infra Engineering Limited and Alchemist Asset Reconstruction Company Limited v. Tirupati Buildings & Offices Pvt. Ltd., where financial creditors sought to initiate CIRP against corporate debtors already facing winding-up proceedings in High Courts. The core issue revolves around whether the IBC process can be triggered when winding-up
…Union Bank of India, claiming to be a Financial Creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against Era Infra Engineering Limited, the Corporate Debtor. Era Infra Engineering Limited is an EPC contractor engaged in large construction projects and has been availing credit facilities since 1990. In 2012, a Working Capital Term Loan of Rs. 100 crores was sanctioned. The total loan amount sanctioned to the Corporate Debtor was Rs. 1506.33 crores, with a default amount of Rs. 681.04 crores, plus External Commercial Borrowing of USD 11,971,939.12 as of 31.05.2017. The Corporate Debtor raised an objection that several company petitions for winding up were pending before the Delhi High Court. The Principal Bench of NCLT framed the question of
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A Working Capital Term…
The loan was d…
This case involves a reference to a three-member bench of the National Company Law Tribunal (NCLT) to address conflicting views among coordinate benches regarding the interplay between winding-up petitions pending before High Courts and the initiation of Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The reference arises from several cases, including Union Bank of India v. Era Infra Engineering Limited and Alchemist Asset Reconstruction Company Limited v. Tirupati Buildings & Offices Pvt. Ltd., where financial creditors sought to initiate CIRP against corporate debtors already facing winding-up proceedings in High Courts. The core issue revolves around whether the IBC process can be triggered when winding-up
…Union Bank of India, claiming to be a Financial Creditor, sought to initiate Corporate Insolvency Resolution Process (CIRP) against Era Infra Engineering Limited, the Corporate Debtor. Era Infra Engineering Limited is an EPC contractor engaged in large construction projects and has been availing credit facilities since 1990. In 2012, a Working Capital Term Loan of Rs. 100 crores was sanctioned. The total loan amount sanctioned to the Corporate Debtor was Rs. 1506.33 crores, with a default amount of Rs. 681.04 crores, plus External Commercial Borrowing of USD 11,971,939.12 as of 31.05.2017. The Corporate Debtor raised an objection that several company petitions for winding up were pending before the Delhi High Court. The Principal Bench of NCLT framed the question of
…A Working Capital Term…
The loan was d…