NCLAT orders liquidation of Amtek Auto

The National Company Law Appellate Tribunal (NCLAT) on Friday ordered liquidation of debt-ridden Amtek Auto as it declined lenders' request for extension of insolvency resolution process deadline.

Amtek Auto was among the first list of 12 companies which were referred by the RBI in 2017 to respective banks for initiation of insolvency process for defaults.

UK-based Liberty House was selected as the highest bidder by the committee of creditors (CoC) of Amtek Auto. However, it later backed out citing some reasons following which the lenders requested 90 days more time to find a new buyer.

A three-member bench headed by Chairperson Justice S J Mukhopadhaya directed the Chandigarh bench of the National Company Law Tribunal (NCLT) to pass an order of liquidation as 270 days mandated under IBC for finalising a resolution plan have already lapsed.

"We are neither inclined to give any direction as was sought for by the CoC nor to exclude any period calling for fresh Resolution Plan," NCLAT said in an order Friday.

It further said,"more than 270 days having passed, the Adjudicating Authority (NCLT) will pass appropriate order of liquidation, which will be in accordance with law."
"In absence of any extraordinary situation and the fact that more than 270 days have already passed, we find no ground to exclude any period," it said adding "once a plan is approved by the NCLT under Section 31, if it is not implemented, that cannot be a ground to exclude any period."