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NCLT rejects ICICI's plea to start insolvency proceedings against Era Infra

The tribunal held that "on account of duplicacy" of the claims, the petition filed by ICICI Bank "can not be entertained"

Press Trust of India  |  New Delhi 

ICICI Bank

The National Company Law Tribunal (NCLT) has rejected ICICI Bank's plea to initiate insolvency proceedings against Era Infrastructure (India) Ltd on the grounds of "duplicacy" of claims.

A two-member bench headed by President Justice M M Kumar observed that has already raised similar claims against its parent company Engineering, which is currently undergoing resolution process.

The tribunal held that "on account of duplicacy" of the claims, the petition filed by "can not be entertained".

"This is again raised for admission in the present proceeding. Such a course obviously is not permissible in law...," it said.

The tribunal observed that the application filed by to initiate insolvency proceedings against Era Infrastructure was based on the same sets of facts and documents which the resolution professional (RP) of Engineering had earlier rejected.

Later, had on December 6, 2018 directed the RP of Engineering to admit the said claims as financial debt of the company.

was in the first list of 12 defaulting which was issued by Reserve Bank of India, directing banks to recover debts through the Insolvency and Bankruptcy (IBC) Code.

ICICI Bank had given a loan of Rs 240 crore to Era Infrastructure India. For the loan, its parent firm had guaranteed the payments, which were later defaulted on.

Meanwhile, corporate insolvency was initiated against the parent firm by and its RP had invited claims.

ICICI Bank had lodged its claim before the RP placing reliance on securities and contractual comfort provided by Era Infra Engineering towards the entities and group related to it.

However, the RP had rejected its claims on September 13, following which ICIC Bank approached the NCLT. The tribunal had admitted ICICI Bank's plea on December 6, 2018 and had directed RP to admit the claims.

First Published: Sun, May 12 2019. 16:56 IST
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