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IBC moratorium: NCLT rules NCS Sugars’ property sale invalid

Business Line  

The Hyderabad bench of the National Company Law Tribunal (NCLT) has ruled as invalid the sale of company assets under the Andhra Pradesh Revenue Recovery Act, 1861, when a moratorium had been declared under the Insolvency and Bankruptcy Code 2016 (IBC).The NCLT’s recent ruling in the case of NCS Sugars in Bobilli mandal of Andhra Pradesh’s Vizianagaram district is the first-of-its-kind involving the Revenue Recovery Act after IBC came into force.The ruling came on a petition filed by K Sivalingam, who was appointed as the resolution professional in the Corporate Insolvency Resolution Process (CIRP) of NCS Sugars, after the district collector sold properties of the company. The firm came under the CIRP process after Punjab National Bank (erstwhile Oriental Bank of Commerce) sought it.