The National Company Law Tribunal has created history under the new Insolvency and Bankruptcy Code it last week ordered winding up of two companies – VNR Infrastructures and Bhupen Electronic – after the borrowers and lenders failed to come up with a plan to revive operations. These companies, though small, set a precedent that the new law is living up to its promise of delivering justice in a time-bound manner.
The Hyderabad bench of the tribunal orally pronounced a liquidation order for VNR while a judgement on liquidation of Bhupen Electronic was passed by Mumbai bench. ET considers antecedents in both cases.
VNR Infrastructures
Promoted by Andhra MLC Vakati Narayan Reddy, the company approached the NCLT in February for initiatin…
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