NCLT accepts Synergies Dooray's application for insolvency

Exim and Edelweiss have been restrained from taking any further action in the matter

The National Company Law Tribunal (NCLT) at Hyderabad has accepted the insolvency petition of Synergies Dooray Automotive Ltd, from which Ford used to source automobile components.

This was the first such case filed at any of the NCLT benches under the new insolvency code. Also, one of the earliest cases accepted from the erstwhile Board for Industrial and Financial Reconstruction (BIFR). Mamta Binani, an insolvency professional involved in the case, says 93,000 cases were pending in the BIFR, which was recently dissolved. Synergies Dooray had filed at BIFR in 2005. The issue of the company’s dues to EXIM Bank and recovery by Edelweiss ARC was one of the important issues. BIFR in May 2012 had directed that the dues of EXIM were to be settled at 26.66 per cent of the principal amount. This order was challenged at the appellate tribunal. 

The recent NCLT order restrains EXIM and Edelweiss from taking any further action in the issues raised. 

By the current provisions, debtors or creditors may initiate a corporate insolvency petition at any of the NCLTs. Within 180 days of the case being accepted, an interim resolution professional has to find a solution.