NCLAT Upholds Insolvency Proceedings Against Indrajit Power

The NCLAT has rejected a plea to delay insolvency proceedings against Indrajit Power. The decision supports an earlier ruling by the NCLT, confirming a financial default claimed by Yes Bank. Despite attempts to settle, the appellate tribunal found no grounds to intervene in the case.

The National Company Law Appellate Tribunal (NCLAT) has rejected a plea to stay ongoing insolvency proceedings against struggling thermal power producer, Indrajit Power. The decision came after an appeal challenging the initial February 1, 2024 order by the National Company Law Tribunal (NCLT) was dismissed.

The NCLAT concurred with the NCLT's finding that the debt and default by Indrajit Power were not disputed, affirming that the arguments for a stay, as proposed by the suspended board's director, Rajiv Munjal, did not hold merit. The bench noted that attempts to settle the debt further evidenced acknowledgment of the default.

Yes Bank, acting as a financial creditor, initiated the original plea citing a default of Rs 331.41 crore, which was later transferred to JC Flower Asset Reconstruction. Despite various opportunities for settlement, as of the latest appeal on January 7, 2025, no resolution had been reached, resulting in the decision to uphold the insolvency proceedings.

(With inputs from agencies.)