MUMBAI: The fledgling National Company Law Tribunal has rejected insolvency proceedings sought by Leo Duct Engineers & Consultants that facilitates the continuation of banks recovery under the SARFAESI Act which was the law of choice before Insolvency and Bankruptcy Code came up.
The move will help lenders Standard Chartered Bank and Canara Bank to recover their dues under the SARFAESI Act which provides for lenders to sell pledged securities to recover loans. The company, which owes about Rs 41 crore loans to its financial creditors voluntarily filed for insolvency.
It appears that the corporate debtor is eager to sound its own death knell, presumably to scuttle the proceedings before SARFAESI as the consequential moratorium imposed…
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