London-based Liberty House fails to make the payment for Amtek Auto

Lenders will now seek court's directions on penal action against the London-based firm. A Liberty House source said the company has asked for an extension from banks

London-based Liberty House failed to make the payment for Amtek Auto on Thursday as the deadline set by the lenders came to an end, throwing the entire debt resolution process off track. The company had made the winning bid for Amtek Auto in July this year at Rs 42 billion but has not paid any amount to banks to date, said a source close to the development.

Lenders will now seek directions from court whether to initiate action under Section 74(3) of the Insolvency and Bankruptcy Code (IBC). The section is triggered when the bidder defaults on a court-approved plan, and