The Insolvency Petition filed against SEL Manufacturing, the first company under the Reserve Bank of Indias (RBI) second list to have been referred to the National Company Law Tribunal (NCLT), has now been admitted.
SBI referred the case to Chandigarh Bench of the NCLT on October 12, 2017 under Section 7 of the Insolvency and Bankruptcy Code, 2016, (IBC) owing to a debt amounting to 1,136 crore.
SEL, a company which was under the Corporate Debt Restructuring (CDR) mechanism, heavily contested the application on several grounds. Apart from defending itself by deflecting the petition on procedural grounds, SEL blamed the tight liquidity policy of banks for its misfortunes.
SEL said that the term default has to be interpreted differ…
Read the full article at: https://barandbench.com/nclt-initiates-insolvency-against-sel/