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Ahluwalia Contracts (India) Ltd has settled the payment issues with its operational creditor A2 Interiors Products and has sought to withdraw the insolvency process initiated by the National Company Law Tribunal (NCLT).
The matter has been amicably resolved and settled with A2 Interiors Products, who has, in turn, filed for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) with the Interim Resolution Professional (IRP) and NCLT, Ahluwalia Contracts said in a statement.
“The steps to get the order set aside are in progress,” it added.
“We have been in the business of construction for over 40 years and have been recognised and awarded as the ‘Best Professionally Managed Company’ by Construction Industry Development Council. We have been part of many large turnkey projects and associated with India’s top architects in constructing some of the iconic buildings. We would like to reiterate that as an organisation we are well poised for growth with excellent financial condition. The faith of our investors is intact and gives us confidence to even grow further,” Vipin Kumar Tiwari, Company Secretary, Ahluwalia Contracts, said.
In its May 5 order, NCLT’s Delhi hench had appointed Satish Kumar Chugh as the IRP to start a Corporate Insolvency Resolution Process (CIRP) against Ahluwalia Contracts.
Also Read: NCLT Delhi admits insolvency resolution proceedings against Ahluwalia Contracts
This followed a prayer moved by New Delhi-based A2 Interiors Products, alleging payment defaults of ₹14.10 crore for various civil and electrical works done for the corporate debtor (Ahluwalia Contracts). The creditor also stated in its filing before NCLT in 2019, that Ahluwalia Contracts had refused to clear the pending dues, despite having admitted the same on several occasions.
On its part, Ahluwalia Contracts had vehemently disputed the pleas.
A New Delhi-based civil contractor, Ahluwalia Contracts had posted a total income of ₹1,884.93 crore for FY19-20, and 1,220.49 crore for the nine months of FY21.
“A2 Interiors Products had filed the application under section 9 of the Insolvency and Bankruptcy Code, 2016, which stated that a firm can move bankruptcy proceedings if the debtor owes more than ₹1 lakh. Later in 2020, this was increased to about ₹1 crore,” Mohit Chaudhary, Managing Partner at law firm Kings and Alliance LLP said, who is also the legal advisor to A2 Interiors Products, told BusinessLine on Friday.
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