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The National Company Law Tribunal (NCLT) has ordered insolvency resolution and named an Interim Resolution Professional (IRP) to take charge of the management of VA Tech Wabag, a listed water treatment firm, in an application submitted by construction engineering firm Consolidated Construction Consortium Ltd (CCCL). CCCL has claimed a principal amount of Rs 1.50 crore, of which VA Tech Wabag agreed to pay 50 per cent, during the hearing. In an order on Friday, the NCLT, Chennai bench, comprising Mohd Sharief Tariq, member (judicial), and S Vijayaraghavan, member (technical), said, “We order the commencement of the corporate insolvency resolution process which ordinarily shall get completed within 180 days, reckoning from the day this order is passed.” The water treatment company is referred as the corporate debtor in the matter. The IRP has been directed to take charge of the corporate debtor’s management immediately.
It has also declared the moratorium which shall have effect from the date of the order till completion of the process.Sources said the parties had a contractual dispute in terms of the payment of the amount. The principal amount claimed by CCCL, the operational creditor, is Rs 1.50 crore. NCLT bench, in an order issued on September 14, observed that this amount along with interest, if any, as provided for in the agreement entered into between the operational creditor and corporate debtor in the instant case, may be paid. The corporate debtor was given an opportunity to settle the outstanding amount within 15 days from the date of receipt of copy of the order, failing which the application was to considered for admission.