The National Company Law Tribunal has rejected insolvency proceedings sought by Leo Duct Engineers & Consultants under the the Insolvency and Bankruptcy Code(IBC), which clears the way for banks to recover assets under the Sarfaesi Act, which was the law of choice before IBC came into existence.
The move will help lenders Standard Chartered Bank and Canara Bank recover their dues under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002, which provides for lenders to sell pledged securities to recover loans.
The company, which owes about Rs 41 crore to its creditors, had voluntarily filed for insolvency.
The corporate debtor is eager to sound its own death knell, presum…
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