India’s National Company Law Appellate Tribunal (NCLAT) set aside the corporate insolvency resolution process (CIRP) against the world’s largest tea producer McLeod Russel India Ltd. following a settlement between the parties.

The development came after the NCLAT’s principal bench in New Delhi took note of the settlement agreement reached between the parties, McLeod Russel said in a stock exchange announcement. It didn’t disclose the settlement details.

The bankruptcy appellate tribunal closed the CIRP initiated against the company via an order dated 10 February, it added.

McLeod Russel went into insolvency resolution after the National Company Law Tribunal (NCLT) on 10 February admitted its financial creditor IL&FS Infrastructure Debt Fund’s application.

The financial creditor had filed the petition seeking to initiate CIRP against McLeod Russel, claiming a default of 347.47 crore rupees ($42 million) as on 12 November 2019.

The tea producer’s promoter Aditya Khaitan later challenged the insolvency order before the NCLAT, which set aside the order on 15 May.

The ruling, setting aside the insolvency order, was passed by NCLAT Chairperson Justice Ashok Bhushan and Technical Member Barun Mitra.

(Note: $1 = 82.2659 Indian rupees)

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