NCLT orders insolvency proceedings against C Sivasankaran's company

The National Company Law Tribunal (NCLT) in Chennai has ordered insolvency proceedings against businessman C Sivasankaran's Siva Industries & Holdings Ltd after hearing an application filed by IDBI Bank.

The loan was taken by Siva Ventures Ltd, which was merged with Siva Industries & Holdings Ltd with effect from April 1, 2011.

IDBI Bank approached the tribunal after Siva Industries defaulted repaying an amount of Rs 130 crore on December 31, 2018. The company also failed to discharge duty of a guarantor for the loans issued to Rudhra Pte Ltd on having the company defaulting repayment of Rs 79.45 crore as on October 1, 2018.

Siva Ventures approached IDBI Bank for various modes of funding from September 17, 2010. Further it has approached the Bank for allocation is non-fund-based limit of Rs 15 crore and Loan Equivalent Receipt limit Rs 4.5 crore to Rudhra Energy Division, which later became Rudhra Pte Ltd, besides the original sanction provided to Siva Ventures.