Insolvency Plea
NCLT admits Axis Finance's insolvency plea against Primat Infrapower
This story was originally published at 16:58 IST on 15 July 2024
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal today admitted a petition by Axis Finance Ltd to start insolvency proceedings against Primat Infrapower & Multiventures Pvt Ltd for defaulting on dues amounting to 875.05 mln rupees. The tribunal has appointed Devarajan Raman as the interim resolution professional to carry out the functions as mentioned under the Insolvency and Bankruptcy Code, 2016.
The tribunal said that the debt and default have been satisfactorily established against the company from the records. "Further, we hold that the petition is within limitation and it is not barred by Section 10-A of the (Insolvency and Bankruptcy) Code," it said.
"We are also satisfied that a default of well over Rs. 1 crore (10 mln rupees) has been committed by the corporate debtor (Primat Infrapower), thereby satisfying the minimum threshold prescribed u/s (under section) 4 of the (Insolvency and Bankruptcy) Code," the tribunal said. It ordered a moratorium against Primat Infrapower under Section 14 of the Insolvency and Bankruptcy Code.
In 2018, Axis Finance had sanctioned a loan of 1 bln rupees to Primat Infrapower. The loan was secured by a pledge of securities in favour of Axis Finance. The securities were pledged by Direct Media Distribution Ventures Pvt Ltd, Primat Infrapower, and Essel Corporate LLP. In 2020, Axis Finance asked Primat Infrapower, Direct Media and Essel Corporate to pay the outstanding amount of 869.52 mln rupees. On non-payment of the dues, Axis Finance moved the tribunal to start insolvency proceedings against Primat Infrapower. End
Reported by Surya Tripathi
Edited by Ashish Shirke
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