Nirmal Lifestyle moves NCLAT on insolvency plea

Mumbai: Nirmal Lifestyle has filed an appeal before the National Company Appellate Law Tribunal (NCLAT) against a recent order of the Mumbai bench of the National Company Law Tribunal (NCLT), which admitted an insolvency resolution petition against the company. A corporate debtor, the company had failed to make a payment of Rs 286 crore under facilities it was granted.
In its August 5 order that was made available on Wednesday, the NCLT had appointed chartered accountant Ajit Gyanchand Jain as its interim resolution professional (IRP) to run the day-to-day affairs of the company.The move came on a petition filed by financial creditor IDBI Trusteeship Services under the Insolvency and Bankruptcy Code (IBC) of 2016.
Ashok Paranjpe, managing partner at MDP & Partners, who are solicitors for Nirmal Lifestyle, confirmed that an appeal was filed and stated that consent terms were executed between the financial creditor and the company for settlement of disputes. Its appeal is on the grounds that, despite settlement terms being executed, NCLT passed interim orders and admitted the insolvency petition against it.
In its order, the NCLT bench of judicial member H V Subba Rao and technical member Chandrabhan Singh had, after hearing advocates Rohit Gupta for IDBI and Simil Purohit for Nirmal, allowed the financial creditor’s plea and initiated the corporate insolvency resolution process (CIRP).