In a relief to listed pharmaceutical firm Bilcare, the National Company Law Appellate Tribunal (NCLAT) has stayed the bankruptcy court’s order of admitting the company under the corporate insolvency resolution process (CIRP). The company was admitted under the resolution process on a plea filed by Assets Reconstruction Company (India) after it defaulted on its dues of over ₹235 crore.
“The appellant (Bilcare) submits that before the adjudicating authority (NCLAT) the appellant has filed an application for an extension of time till November 30 to make the payment under OTS (one-time settlement) to which the respondents (ARC) has also consented,” observed the division bench presided by Justice Ashok Bhushan in its order of November 15.
The appellate tribunal will hear the matter further on December 7. Before the appellate tribunal’s order, the Mumbai bench of the National Company Law Tribunal (NCLT) had admitted the company under CIRP on November 11, and had appointed Ashutosh Agarwala as the interim resolution professional (IRP) of the company.
The lender in its plea at NCLT had argued that originally, the South Indian Bank had sanctioned a standby letter of credit (SBLC) facility to Bilare to the tune of over $21 million (about ₹180 crore) in October 2013. As per the terms agreed, the SBLC facility was valid for five years with a bullet repayment at the end of five years.
The company failed to repay its dues on November 10, 2018, and subsequently, in 2019, the lender approached the Mumbai NCLT against Bilcare. In September 2019, the parties agreed to amicably settle the matter.
Source: Economic Times