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NCLT grants 6 weeks to Visa Steel

Steel News - Published on Tue, 15 Jan 2019

Image Source: The Telegraph
The Telegraph reported that the National Company Law Tribunal has granted six weeks to the promoters of Visa Steel to save the company from slipping into insolvency. NCLT Calcutta asked Visa Steel to get a clear order from Orissa High Court on whether there is a stay on kicking off the corporate insolvency resolution process at the behest of the State Bank of India, the largest lender to debt-laden Visa. NCLT judicial member Madan B Gosavi, in an order last week, said “Six weeks’ time is granted to the corporate debtor to get on record a clear order from the Hon’ble High Court of Orissa in respect of the stay to this proceedings. He may proceed with the hearing of the main matter on its own merit.”

The member observed that instead of pursuing the matter before the high court, the financial creditor kept filing application before the NCLT. It also noted that the corporate debtor did not take any step to get the matter decided.

The next date of hearing at NCLT Calcutta has been fixed on February 28.

Visa, which was part of the second list of defaulters the RBI had asked banks to take up for CIRP, has been able to put on hold insolvency proceedings because of a stay order passed by the division bench of Orissa High Court.

Source :

Posted By : Rabi Wangkhem on Tue, 15 Jan 2019
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