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NCLT Ahmedabad Admits Insolvency Proceedings Against Anil Ambani Group Company

LIVELAW NEWS NETWORK
26 Aug 2019 1:19 PM GMT
NCLT Ahmedabad Admits Insolvency Proceedings Against Anil Ambani Group Company
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The National Company Law Tribunal bench of Ahmedabad has ordered initiation of insolvency proceedings against 'RMOL Engineering and Offshore Ltd' ( till recently known as 'Reliance Marine Engineering and Offshore Ltd'), belonging to Anil Dirubhai Ambani Group (ADAG). This was done by admitting the insolvency application filed by Industrial Financial Corporation of India Ltd (IFCI), a...

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The National Company Law Tribunal bench of Ahmedabad has ordered initiation of insolvency proceedings against 'RMOL Engineering and Offshore Ltd' ( till recently known as 'Reliance Marine Engineering and Offshore Ltd'), belonging to Anil Dirubhai Ambani Group (ADAG).

This was done by admitting the insolvency application filed by Industrial Financial Corporation of India Ltd (IFCI), a public sector financial institution. IFCI had advanced a loan of 202 crores to Pipavav Marine and Offshore Limited in 2013 which was later taken over by Reliance. The company is liable to pay about 200 crores to IFCI.

IFCI filed Section 7 petition under the Insolvency and Bankruptcy Code in the year 2017. The application was pending since then for admission. 

Notably, in view of series of adjournments granted by NCLT Ahmadabad, IFCI was constrained to file an Appeal before the National Company Law Appellate Tribunal ( NCLAT ) Delhi. The Appellate Authority by its order passed on April 11, 2019 directed NCLT Ahmedabad to take up the matter on urgent basis after hearing the 'Corporate Debtor' and pass the appropriate orders by April 30.

Despite the direction by the NCLAT, the case was further adjourned in two consecutive hearings. The IFCI again approached NCLAT against the grant of adjournment.

In appeal, the NCLAT, passed a scathing order as follows :

"In the facts and circumstances, we give last opportunity to Mr. Harihar Prakash Chaturvedi, (Member Judicial) and Ms. Manorama Kumari, (Member Judicial), Adjudicating Authority ('National Company Law Tribunal'), Ahmedabad Bench, Ahmedabad to pass final order by 21st August, 2019 failing which the matter will be referred to the 'President, National Company Law Tribunal, New Delhi and the Secretary, Ministry of Corporate Affairs for appropriate orders."

In view of the direction NCLT Ahmedabad conducted day to day hearing and today has passed the order of insolvency proceedings against RMOL.

Incidentally while the case was pending , the name of 'Reliance Marine & Offshore Ltd' was changed into "RMOL Engineering and Offshore Ltd.  

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