NCLT admits Reliance Commercial Fin insolvency plea against Summit Ceminfra
This story was originally published at 19:12 IST on 10 October 2024
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal on Thursday admitted a petition by Reliance Commercial Finance Ltd. to start insolvency proceedings against Summit Ceminfra Pvt. Ltd. for an unpaid amount of INR 10.04 billion. The tribunal appointed Mantrah Insolvency Professionals Pvt. Ltd. to carry out the functions of Summit Ceminfra as per Insolvency and Bankruptcy Code, 2016.
"In the light of the above facts and circumstances, the existence of debt and default is reasonably established by the applicant as a major constituent for admission of the application under Section 7 of the Code," said the tribunal. The tribunal directed a moratorium against Summit Ceminfra as per Section 14 of the code.
Reliance Commercial and Reliance Home Finance Ltd had disbursed loan amounts through four different sanction letters to Summit Ceminfra. However, Reliance Home Finance got into financial stress and the loan advanced by it along with all rights and securities were assigned to Reliance Commercial. After Summit Ceminfra defaulted on the loan repayment, Reliance Commercial moved the tribunal to start insolvency proceedings against the debt-ridden company.
Reliance Commercial, which has been rebranded as Reliance Money, was acquired by Authum Investment & Infrastructure Ltd. with effect from Oct. 14, 2022. Reliance Commercial is now a wholly owned subsidiary of Authum. End
Reported by Surya Tripathi
Edited by Akul Nishant Akhoury
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