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NCLAT Dismisses Plea against Insolvency of Tayo Rolls

Steel News - Published on Mon, 22 Jul 2019

Image Source: Economic Times
The National Company Law Appellate Tribunal has dismissed the plea filed against the ongoing insolvency of Tayo Rolls Ltd, a subsidiary of Tata Steel, filed by some of its employees. A two member bench headed by Chairman Justice S J Mukhopadhaya said that no interference is called for against the order of admission of insolvency proceedings of the company. Rejecting the plea, NCLAT said that such submissions cannot be accepted, nor such ground can be noticed to admit or reject the application under Section 9. NCLAT observed that "In fact, the present appeal is not maintainable under Section 61, as appellant Suresh Narayan Singh is not an aggrieved person, the application under Section 9 preferred by him having been admitted.”

It further said that "The appeal is dismissed. Though we are of the opinion that this is a frivolous appeal for which cost should be imposed, but in view of the fact that Suresh Narayan Singh is representing 284 workers, we are not imposing any cost."

Earlier, the Kolkata bench of the National Company Law Tribunal had on April 5, 2019, had admitted the initiation of Corporate Insolvency Resolution Process under Section 9 of the Insolvency and Bankruptcy Code, 2016 with regards to Tayo Rolls. The plea was filed by Suresh Narayan Singh who is the authorised representative of 284 workers of Tayo Rolls. However, Mr Singh later challenged the order of NCLT before NCLAT contending that NCLT order was unwarranted and not tenable under law.

Tayo Rolls, is a subsidiary of Tata Steel since December 2008. It was promoted in collaboration with Japan based Yodogawa Steel Works and Nissho Iwai Corporation for production of cast iron and cast steel rolls for metallurgical industries.

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Posted By : Ratan Singh on Mon, 22 Jul 2019
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