NCLAT restricts handing over of Bafna Pharma to its promoter

If the possession has already been handed over, promoter will not alienate, transfer or create third-party encumbrance of properties and must ensure firm remains a going concern

The National Company Law Appellate Tribunal (NCLAT) has called upon the monitoring committee for Chennai-based Bafna Pharmaceuticals Ltd not to hand over possession of the company to its promoter. The order comes in an appeal filed by Saravana Global Holdings Ltd and others against the company.

Earlier, the National Company Law Tribunal (NCLT) had issued an order approving the resolution plan by the promoter, Bafna Mahavir Chand, based on approval by the Committee of Creditors, as it falls within the meaning of Micro, Small and Medium Enterprises. 

Based on the appeal, Justice S J Mukhopadhaya, chairperson of NCLAT and Justice Bansi Lal