NCLT Admits Insolvency Plea Against KLT Group Affiliate Colour Roof

India's National Company Law Tribunal (NCLT) admitted an insolvency resolution petition against Mumbai-headquartered KLT Group’s affiliate company Colour Roof India Ltd.

The Mumbai bench of the NCLT has appointed Hemant Kumar Shah as the interim resolution professional of Colour Roof, according to the tribunal’s order.

The development came after Colour Roof’s financial creditor Phoenix ARC Private Ltd. filed a corporate insolvency resolution petition (CIRP) under the Insolvency & Bankruptcy Code against the company, claiming a default of over 166 crore rupees ($20 million).

“There is a default by the corporate debtor (Colour Roof) in the payment of the debt amount. Therefore, we are of the considered view that the present petition deserved to be admitted under Section 7 of the code for initiation of CIRP against the corporate debtor,” Judicial Member Kishore Vemulapalli and Technical Member Prabhat Kumar said in an order dated 24 February.

Lawyers Manaswi Agrawal and Saloni Kalwade of Meraki Chambers appeared for the Phoenix ARC, while Colour Roof was represented by law firm MDP & Partners.

Colour Roof claims to be the producer of the first steel-concrete composite deck sheets in India, according to its website. The company's products are widely used for building and construction industries for exterior applications and interior applications, as well as in auto and appliances, it said.

(Note: $1 = 82.9380 Indian rupees)

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