Inox Wind asks NCLT to quash insolvency case over Rs 57 lakh dues

Experts say there is no going back; company fails to clarify on lay-offs

Last Updated : Jul 17 2017 | 1:33 AM IST

Inox Wind Limited, facing insolvency proceedings over non-payment of dues of Rs 57 lakh to its customs agent, has asked the National Company Law Tribunal (NCLT) to quash the case.

“Inox Wind Limited has preferred an appeal before the NCLT, praying that the said proceedings be quashed. The matter has been listed for hearing on Monday, July 17,” Inox said in an emailed reply to Business Standard.

The reply came a day after the paper reported that the company had been dragged to the NCLT by its customs agent Jeena & Company over the dues.

Inox Wind Limited, in its reply, said it had “settled the dispute with the operational creditor, Jeena & Company”. The company, however, did not respond to the queries regarding employee lay-offs and vanishing working capital. Business Standard had reported that the company had laid off close to 400 employees at its manufacturing unit.

According to sources, the company has exhausted all its working capital and has nil order book with negligible cash flow. The company has also been failing to oblige its contracts with the clients of its wind turbine generators, said industry sources.

Meanwhile, insolvency experts pointed out that once the proceedings commence, quashing it is highly unlikely. “Insolvency can’t be taken in such lighter vein. One cannot file the case and then settle it outside court and the matter is rested. Insolvency, when initiated, would follow its complete course of action. Companies need to take it seriously,” said an expert.

In the NCLT order dated July 11 the court had appointed an interim resolution professional (IRP) and suspended the powers of the board of directors. “The management of the affairs shall vest with the IRP and officers and the managers of the ‘corporate debtor’ shall report to the IRP, who shall be enjoined to exercise all the powers as are vested with IRP,” said the order reviewed by Business Standard.