Real-Time MoneyWire is available only to registered users. This is best for professional traders and people who track markets actively.Real-Time MoneyWire is available only to registered users. This is best for professional traders and people who track markets actively.
Informist, Wednesday, Jul. 9, 2025
NEW DELHI – The National Company Law Appellate Tribunal Wednesday upheld an order of the Mumbai bench of the National Company Law Tribunal to admit Catalyst Trusteeship Ltd.'s insolvency plea against Bombay Rayon Clothing Ltd. The appellate tribunal said Bombay Rayon Clothing had expressly admitted debt and default in its pleadings and the guarantee executed by the company in favour of Catalyst Trusteeship being of a continuing nature, admission of insolvency application by the Mumbai bench was justified.
The relevant default by Bombay Rayon Clothing occurred on Mar. 25, 2023, well beyond the outer limit of the protection provided by Section 10A of the Insolvency and Bankruptcy Code, 2016, the appellate tribunal said. Section 10A of the code was introduced to provide a safeguard for corporate debtors during the COVID-19 pandemic. It suspended initiation of the insolvency process for defaults arising between Mar. 25, 2020, and Mar. 24, 2021.
The case has its genesis from a debenture trustee agreement executed in 2017 between principal borrower Reynold Shirting Ltd. and debenture trustee Catalyst Trusteeship for 1,700 non-convertible debentures. A guarantee agreement was also executed by Bombay Rayon Clothing in favour of Catalyst Trusteeship.
In 2023, Catalyst Trusteeship called upon Reynold Shirting and Bombay Rayon Clothing to pay their dues. As no response was received from Bombay Rayon Clothing, Catalyst Trusteeship moved the Mumbai bench to start insolvency proceedings against the company. Challenging the tribunal's admission order, Gangadhar A. Kotia, suspended director of Bombay Rayon Clothing, had moved the appellate tribunal. End
Reported by Surya Tripathi
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (11) 4220-1000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
Share this Story:
