Inox Wind Limited (IWL), which is facing insolvency proceedings over unpaid dues of Rs 57 lakh to its Customs agent, has asked the National Company Law Tribunal (NCLT) to quash the case.
“IWL has preferred an appeal before the National Company Law Tribunal (NCLT), praying that the said proceedings be quashed. The matter has been listed for hearing on Monday, July 17, 2017,” Inox said in an emailed reply to Business Standard.
The reply came a day after the paper reported that Inox Wind has been dragged to the NCLT by its Customs agent Jeena & Company over unpaid dues of Rs 57 lakh. (Read more)
In its reply, IWL said it has “settled the dispute with the operational creditor, Jeena & Company”.
The company, however, did not respond to queries regarding employee layoffs and vanishing working capital. Earlier, Business Standard had reported that IWL has laid off close to 400 employees at its manufacturing unit. According to sources, the company has exhausted all its working capital and has a nil order book with negligible cash flow. The company has also been failing to meet its contracts with clients of its wind turbine generators, said industry sources.
Meanwhile, insolvency experts pointed out that once the proceedings commence, quashing it is highly unlikely. “Insolvency can’t be taken in such a light vein. One cannot file the case and then settle it outside the court and the matter is rested. Insolvency, when initiated, would follow its complete course of action. Companies need to take it seriously,” said an expert who did not wish to be named.
In the NCLT order dated July 11, 2017, the Court had appointed Interim Resolution Professional (IP) and suspended the powers of the board of directors. “The management of the affairs shall vest with the Interim Resolution Professional and officers and the managers of the ‘corporate debtor’ shall report to the IP, who shall be enjoined to exercise all the powers as are vested with IP,” said the order reviewed by Business Standard.