Mumbai: Indias dedicated bankruptcy court has sought to remove legal impediments to liquidation or loan-recovery proceedings by setting aside property attachment claims of state-run utilities or operational creditors that have not been paid their dues by bankrupt private-sector borrowers.
The National Company Law Tribunals (NCLT) Allahabad bench said that district authorities cant prevent the sale of land of bankrupt borrower Raman Ispat for its failure to pay outstanding power bills. The local authorities had attached the companys land parcel in lieu of outstanding utility-usage dues.
This is a landmark judgement removing a key hurdle in liquidation processes, said Anil Goel, founder AAA Insolvency Professionals. The order will now be…
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