Kolkata: The National Company Law Tribunal (NCLT)’s Kolkata bench recently admitted a government-company into insolvency for a debt of over Rs 4 crore.
An Ahmedabad-based private construction company Chevrox Construction Private Limited had sought to initiate Corporate Insolvency Resolution Process (CIRP) against Bridge and Roof Co. (India) Limited for alleged default in payment of Rs 4,47,90,393. The petition was filed on October 19, 2022. It was alleged that the first date of default was August 3, 2021.
A coram of judicial member Rohit Kapoor and technical member Balraj Joshi admitted the company into insolvency. “As far as the Corporate Debtor is concerned, we see from the Articles of Association of the Corporate Debtor which is given in its website1, that it has been incorporated under the Indian Companies Act, 1913, therefore, it is clear that the Corporate Debtor is a Company and by virtue of the fact that 99.35% shares of the Company are held by Govt. of India (Annual report 2022-23), it is a Govt.Company and IBC 2016 makes no distinction between a Government Company or a Private or Public company for the purposes of Insolvency resolution under Section 7,9 or 10 and hence the Corporate Debtor herein shall fall under the purview of the Code.
In light of the aforementioned facts and circumstances, this Adjudicating Authority is satisfied that the Corporate Debtor has defaulted in the repayment of its debt due to the Operational Creditor and as such the instant petition ought to be admitted,” it was observed.