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The National Company Law Tribunal (NCLT)'s Chennai bench has ordered the initiation of corporate insolvency resolution process against Trivitron Healthcare, founded by investor GSK Velu. The order follows a petition filed by the RNB Design Arc Systems- a supplier of the firm.
RNB Design Arc Systems has supplied and installed 90 fire-rated doors at Trivitron's factory. On February 18, 2017, the supplier claimed payments worth Rs 8.97 lakh with an interest rate of 18 per cent.
Trivitron, on its part, raised two objections to the proposed claim. It argued that the assigned work was completed by the supplier with a delay of nine months, besides disputing the interest rate demanded by the entity.
Hearing the dispute, Ch Mohd Sharief Tariq, a judicial member of NCLT, Chennai ordered the initiation of insolvency proceedings against the defaulting firm, while adding that resolution process should be completed over a period of 180 days, beginning from the date of the NCLT verdict.
A moratorium has also been declared on various activities.
Trivitron, which has a turnover of around Rs 700 crore, is into manufacturing medical devices and operates in India as well asl overseas markets.