Siva Industries: NCLT rejects settlement offer, orders liquidation

The National Company Law Tribunal (NCLT), Chennai, has rejected a one-time settlement offer made by the erstwhile promoters of Siva Industries and Holdings Ltd to its lenders, saying the proposal is not in conformity with the provisions of the Insolvency and Bankruptcy Code (IBC), 2016. The tribunal also ordered the liquidation of the company. In 2019, the NCLT had admitted insolvency proceedings against the C Sivasankaran-promoted company in a case filed by IDBI Bank. Later, a majority of the committee of lenders had approved a one-time settlement offer from RCK Vallal, father of Sivasankaran, which had been filed before the NCLT as per Section 12-A of the IBC. As a result, withdrawal from the insolvency process was also sought.