SBI gets NCLT nod for insolvency process against Alok Industries

The Ahmedabad Bench of the National Company Law Tribunal (NCLT) on Tuesday admitted the State Bank of India’s (SBI’s) application for initiating insolvency proceedings against textile player Alok Industries. The Ahmedabad Bench, chaired by Justice Bikki Raveendra Babu, also ordered the appointment of Ajay Joshi as interim resolution professional (IRP) for coming up with a workable solution for Alok Industries.

The NCLT also dismissed the Industrial and Commerce Bank of China’s (ICBC’s) plea seeking the dismissal or deferment of insolvency proceedings against Alok Industries on grounds of ongoing litigation in the Bombay High Court.  ICBC had filed a litigation in the Bombay HC for initiating the winding up process of Alok Industries through its credit facility agency HSBC. The Bombay HC is set to hear the ongoing liquidation case against Alok Industries on July 19.