Debt

Debt financing

NCLAT allows Reliance ARC plea to start insolvency against Narendra Plastics

Economic Times  

The National Company Law Appellate Tribunal has set aside an order of NCLT (National Company Law Tribunal) that rejected an appeal by Reliance Asset Reconstruction Company Ltd (RARCL) to initiate insolvency proceedings against Narendra Plastics. The NCLAT also directed the NCLT to initiate the insolvency proceedings against the company. The NCLT had said the RARCL's plea was barred under limitations as it was filed beyond the prescribed limit of three years after default. The tribunal had said the RARCL had filed a petition under Section 7 of the Insolvency & Bankruptcy Code on May 8, 2019, while Narendra Plastics' account was declared as NPA on June 30, 2014, which was prima facie filed after more than five years.