NCLAT To Hear McLeod Russel Insolvency Resolution In May

India’s National Company Law Appellate Tribunal (NCLAT) will hear McLeod Russel India Ltd.’s insolvency resolution matter in May.

The NCLAT’s principal bench in New Delhi heard the matter on 27 March and granted the tea producer’s promoter Aditya Khaitan three weeks to file a rejoinder affidavit, according to the bankruptcy appellate tribunal’s order.

The NCLAT said its interim order will continue and listed the matter for hearing on 9 May.

The bankruptcy appellate tribunal previously directed McLeod Russel’s Interim Resolution Professional Ritesh Prasad Adatiya not to take any further steps in the company’s corporate insolvency resolution process (CIRP) until the next hearing date on 27 March.

The NCLAT had also ordered Adatiya to run the company as a going concern, including its daily operations, with the assistance of suspended directors, officers and employees.

The development came after Khaitan challenged the bankruptcy court’s insolvency order against the company.

McLeod Russel went into insolvency resolution after the National Company Law Tribunal 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.

(Note: $1 = 82.3228 Indian rupees)

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