Insolvency row: NCLT stays Union Bank's plea against debt-ridden Era Infra

The National Company Law Tribunal on Wednesday reserved its order over the insolvency plea filed by Union Bank of India against debt-ridden Era Infra Engineering Ltd.

The Principal bench of NCLT headed by President Justice M M Kumar reserved order after concluding the arguments from both the sides.

The tribunal has allowed the parties to file their written submission before it, if they want to, within next two days.

NCLT was hearing the plea of UBI, which had moved to recover Rs 6.81 billion (Rs 681.04 crore), along with an overdue external commercial borrowing of $11.97 million, as on 31 May 2017.

Era Infra was in the first list of 12 defaulting companies which was issued by Reserve Bank of India, directing banks to recover debts through the Insolvency and Bankruptcy (IBC) Code.

The matter was stuck at NCLT after Era Infra contended before the tribunal that several company petitions had been filed before the Delhi high court with a prayer for winding up the company and during its pendency tribunal could not proceed.

However, in February NCLT decided to move ahead with insolvency proceedings against Era Infra Engineering.