The Kolkata Bench of the National Company Law Tribunal (NCLT) has ordered for initiation of an corporate insolvency resolution process against distressed rice exporting company, REI Agro, based on an application filed by an operational creditor.
REI Agro has, in the past few years, faced litigation across multiple fora for not only having defaulted in the payment of its debts, but also for alleged fraudulent transactions.
First was, in May 2014, the filing of winding up petition (under Sections 433, 434 and 439 of Companies Act, 1956) against REI in Kolkata High Court by United Bank of India for having failed to repay 224 crore loan it had borrowed from the Bank. Thereafter, in 2015, the UCO Bank invoked provisions of the SARFAESI …
Read the full article at: http://barandbench.com/nclt-orders-initiation-of-insolvency-resolution-against-distressed-rei-agro/