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The Hyderabad High Court suspended the corporate insolvency resolution process against Madhucon Projects Ltd, a construction-cum-infrastructure company.
TheCourt suspended the order passed by the National Company Law Tribunal (NCLT), Hyderabad bench, initiating corporate insolvency proceedings, with Rakesh R Rathi as the Interim Resolution Professional (IRP).
On a petition moved by Madhucon Projects challenging the initiation of proceedings Shri Srikrishna Rail Engineers Private Limited, the High Court passed interim suspension of the NCLT order dated October 5. The management reverted to the company board.
The court observed, “An admission of a petition under Section 9 of the Insolvency and Bankruptcy Code, 2016 has serious repercussions; the NCLT, Hyderabad bench, necessarily ought to have examined the plea raised by the corporate debtor as to the claim of the Operational Creditor being barred by limitation.”
“However, the order under revision does not reflect any such consideration.
“There shall accordingly be interim suspension as prayed for,” the court ordered.
Rakesh Rathi, while acknowledging the receipt of the High Court order suspending the case, handed over the complete charge of the Madhucon Projects back to its promoters.
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