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NCLT adjourns insolvency case against Reliance Naval by IFCI to Jan 11

Reliance Marine & Offshore Ltd failed to repay a Rs 60-crore loan extended by IFCI

Vinay Umarji  |  Ahmedabad 

NCLT adjourns insolvency case against Reliance Naval by IFCI to Jan 11

The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Tuesday adjourned an insolvency case against and Engineering Ltd to January 11, 2018.

Reliance Marine & Offshore Ltd, a subsidiary of and Engineering Ltd and its guarantor, failed to serve a Rs 60 crore loan extended by IFCI, following which the lender approached the against both in mid-November.

The two-judge bench of adjourned the matter till January 11, 2018, after the and Engineering Ltd counsel sought time for considering an appeal to the National Company Law Appellate Tribunal (NCLAT) in the interim.

had filed separate petitions in mid-November in under section 7 of the (IBC) 2016 against defaulter and its guarantor and Engineering Ltd. According to sources, seeks to in all recover dues worth over Rs 150 crore.

In an official statement, stated, "As legally advised, there are no merits in the application filed by before NCLT, Ahmedabad, as its an unsecured creditor.

The action of is unwarranted and premature. The 25 secured lenders of the Company have also requested to solve the matter outside The company will take all necessary steps to safeguard the interest of all the stakeholders."

and Engineering also filed an interim application with the seeking the ongoing hearing to be put in abeyance. Under the application, the company cited an ongoing case in the Gujarat High Court where a defaulter company Shivam Water Treaters has challenged the constitutional validity of section 7 of the IBC 2016 which pertains to insolvency and winding up process under the new law.

However, the NCLT's Ahmedabad bench dismissed the application while stating that the case did not apply to and Engineering Ltd.

On November 27, the had asked to file objections to the insolvency plea which came up for hearing on December 8.

First Published: Tue, December 19 2017. 23:07 IST