Container Corporation Says NCLAT Stays Insolvency Order

Container Corporation of India Ltd. (ConCor) said the National Company Law Appellate Tribunal (NCLAT) stayed the insolvency order against the company.

The development came after the state-run logistics firm sought an interim relief from the NCLAT against the National Company Law Tribunal (NCLT) insolvency order against the company, ConCor said in a stock exchange announcement.

The NCLAT will hear the matter further on 4 September, it added.

The NCLT admitted ConCor for insolvency resolution on 12 July after its operational creditor Roadwings International Private Ltd. filed a petition before the NCLT under Section 9 of the Insolvency and Bankruptcy Code (IBC).

Roadwings sought initiation of corporate insolvency resolution process (CIRP) against the government-owned company for defaulting on a payment of 87.50 crore rupees ($10.65 million).

The dispute is related to the payment of an arbitration award, which has been challenged by ConCor.

The NCLT, while passing its order last week, had also appointed Vivek Sharma as the Navratna company’s interim resolution professional, who last week sought claim details from ConCor’s creditors.

Note: $1 = 82.1355 Indian rupees

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