Can creditors initiate insolvency proceedings against power companies after the Supreme Court directed a status quo until Nov. 14? This is no longer a hypothetical question.
aXYKno Capital Services—an operational creditor—has filed an insolvency application against RattanIndia Power Ltd. The lender stated in its petition that it had provided consultancy services in 2015 for which RattanIndia Power owes it Rs 2.84 crore. BloombergQuint has reviewed a copy of the petition.
The National Company Law Tribunal has issued a notice to RattanIndia Power and will hear the case on Nov. 26.
The question of whether or not the insolvency process can be initiated against RattanIndia Power arises in the light of the Supreme Court’s order in September. Read More