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NCLT allows ICICI Bank's Rs 7-bn claim in Era Infra insolvency case

The infrastructure firm owes its lenders nearly Rs 100 bn in total

Aashish Aryan  |  New Delhi 

Experiencing the IBC

The Principal Bench of the National Company Law Tribunal (NCLT) on Thursday directed the resolution professional (RP) of to admit ICICI Bank's Rs 7-billion claim, which had been earlier denied by him. The tribunal has also directed the RP to grant a proportional voting share in the committee of creditors (CoC).

had given a loan of Rs 2.4 billion to and Rs 4.6 billion to and was liable to get a repayment from the corporate debtor according to the terms of the agreement between the parties. The RP of Era Infrastructure had, however, denied this claim, saying that the agreement could not be construed as akin to guarantee of repayment.

The NCLT, however, rejected the RP's arguments and said that once the corporate debtor had undertaken such obligations, the claims against the same could not be denied to the lender.

"Once it is an amount repayable, then the resolution professional must admit the claim of as financial debt, in respect of the obligations undertaken by the corporate debtor under the credit facilities availed (of) by Ltd and Dehradun Highway Project," the tribunal said in its order.

The had in May ordered initiation of proceedings against Era Infrastructure on a plea moved by Union Bank of India, which had sought to recover Rs 6.8 billion, along with an overdue external commercial borrowing of $11.97 million. In total, the firm owes its lenders nearly Rs 100 billion.

The infrastructure company was among the list of 12 large loan defaulters identified by the Reserve Bank of India (RBI) last year. RBI had in June last year identified 12 such large defaulters and asked their lenders to take them to bankruptcy courts.

First Published: Thu, December 06 2018. 20:54 IST