NCLT admits LIC Housing Finance's IBC plea against Ishwar Constructions
This story was originally published at 21:24 IST on 8 October 2024
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal Tuesday admitted a petition by LIC Housing Finance Ltd. to start insolvency proceedings against Ishwar Constructions Pvt. Ltd. for an unpaid amount of INR 769.41 million. The tribunal appointed Vijay Pitamber Lulla as the interim resolution professional of Ishwar Constructions to carry out functions as per the Insolvency and Bankruptcy Code, 2016.
"As result of discussion, we find the present petition to be a fit case for admission under Section 7 of the Code," said the tribunal. It directed a moratorium against Ishwar Constructions as per Section 14 of the code.
"The petition bearing CP(IB)-336/MB/2023 filed by LIC Housing Finance Limited, the Financial Creditor, under Section 7 of the IBC, 2016 read with rule 4(1) of the Insolvency & Bankruptcy (Application to Adjudicating Authority) Rules, 2016 for initiating Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor M/s. Ishwar Construction Private Limited is hereby admitted," said the tribunal.
LIC Housing had sanctioned a loan facility up to INR 950 million to the company and other co-borrowers for the purpose of construction of residential project named River Residency IV in Pune. However, the company defaulted in repayment of loan in 2020 and continues to be in default.
Today, the shares of LIC Housing Finance ended 1.3% higher at INR 615.25 on the National Stock Exchange. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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