The NCLAT granted an extension to the Corporate Debtor despite the failure to meet the payment deadline set by the NCLT.
The National Company Law Appellate Tribunal (NCLAT), Principal Bench, led by Justice Ashok Bhushan (Chairperson), along with Technical Members Mr. Barun Mitra and Mr. Arun Baroka, reviewed an appeal and granted the Appellant an extension for payment obligations originally set by the NCLT. The outstanding balance was allowed to be paid by October 31, 2024, while requiring interest for the extended period. This decision was made after the Appellant's counsel expressed readiness to settle the balance within one month, despite the Respondent's counsel noting that no payment had been made by the June 30, 2024 deadline.
In the recent NCLAT order, the counsel for the Appellant stated that a total of ₹2.75 crores had already been paid by the Personal Guarantors, while a balance of ₹3.41 crores remained outstanding. The Adjudicating Authority had previously issued an order on May 17, 2024, allowing the Corporate Debtor to pay half of the remaining amount by June 30, 2024, and the second half by September 30, 2024. However, the Appellant failed to meet the stipulated payment deadline, leading to the admission of the Section 7 application through the Impugned Order.
The Appellant's counsel expressed readiness to clear the outstanding balance within one month. In contrast, the Respondent's counsel highlighted that the Appellant had not made any payment by the required date of June 30, 2024. The NCLAT determined that the Appellant must pay the amount due as of June 30, 2024, along with interest at a rate of 9%, with the entire payment, including interest, due by October 31, 2024. Additionally, the counsel for the Resolution Professional noted that 'Form-G' had already been issued.
To maintain procedural order, the NCLAT directed that no Resolution Plan be considered until the next date of the hearing. The appeal was scheduled for listing on November 4, 2024, with an instruction for the Appellant to file an affidavit detailing the payment status by that date.
Mr. Manan Shishodia and Ms. O.P. Soni, Advocates, represented the Appellant.
Mr. Bhanu Chopra, Advocate, appeared for Respondent No. 1.
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