State bank of India has taken the debt trapped Hyderabad-based construction and infrastructure company IVRCL Limited to the National Company Law Tribunal.
The Hyderabad-branch of the NCLT, while admitting the SBI petition, against IVRCL, which is amongst 28 accounts on the Reserve Bank of India list of large non performing assets, appointed Sutanu Sinha as the interim resolution professional.
As per the provisions of Insolvency and Bankruptcy Code, the powers of the Board of Directors of IVRCL stand suspended and such powers shall be vested with the Sutanu Sinha, the IRP, appointed by the NCLT.
Henceforth, the management of affairs of the Corporate debt vests in the IRP, the Board powers suspended and exercised by IRP, the officers and managers of the corporate debtor shall report to the IRP and provide access to documents and records of IVRCL. With this, IRP has been empowered to do all acts and documents in the name of the corporate debtor.
While admitting the SBI petition, Justice Rajeswara Rao Vittanala and Justice Ravikumar Doraiswamy have directed the personnel of IVRCL, its promoters or any persons associated with the management of the company to assist and co-operate with the Interim Resolution Professional to provide access to documents and records and management of affairs of the company.
According to SBI, as of October 2017, Rs 604 crore is due by IVRCL to the bank extended as under various facilities.
The NCLT declared a moratorium against the institution of suits or continuation of pending suits or proceedings against the corporate debtor including execution of any judgement, decree or order in any court of law tribunal, arbitration panel or other authority.
In its order NCLT also observed though IDBI Capital Markets and Securities Limited, an operational creditor filed a Company petition under IBC against IVRCL for a claim of Rs 3.15 crore, wherein the corporate debtor raised various defects in application claimed, in the present case debt is high and default is established. “Therefore, we have taken the present petition for initiating the Corporate Insolvency Resolution Process (CIRP),” the Judges observed in their order.