NCLT orders consolidation of CIRP of two Corporate Debtors having interdependent operations
- Blog|News|Insolvency and Bankruptcy Code|
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- Last Updated on 15 July, 2021
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Case details: TJSB Sahakari Bank Ltd. v. Kshitiz Gupta - [2021] 127 taxmann.com 891 (NCLT - Mum.)
Judiciary and Counsel Details
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- Chandra Bhan Singh | Technical Member & Suchitra Kanuparthi | Judicial Member
- Nausher Kohli, Harsh Gokhale, Makarand Godse, Kishor Satpute, Sandhya Iyer, Rishabh Chandra, Ajinkya Kurdukar and Sadiya Mahek, Advs. for the Appearing Parties
Facts of the Case
The Corporate debtors, i.e., Aditya Vidyut Appliances Ltd. and Aditya Fabrication Pvt. Ltd. (AVAL and AFPL), were undergoing the Corporate Insolvency Resolution Process (CIRP) and the respondent was appointed as Resolution Professional of both corporate debtors.
The Applicant who was a common lender filed an application seeking consolidation of CIRP of AVAL and AFPL stating that both Corporate Debtors were heavily interdependent on one another in terms of operations and therefore, all concerned parties should make an endeavour to arrive at a mutually amicable settlement of the dispute in the larger interest and to enhance the possibility of successful resolution of both Corporate Debtors.
NCLT Held
The NCLT noted that consolidation of both Corporate Debtors would be conducive and would result in various advantages such as pooling together of assets of both corporate debtors and appointment of the common resolution professional and a single Committee of Creditors for both Corporate Debtors. Thus, consolidation of CIRP of both Corporate Debtor’s namely AVAL and AFPL was to be ordered.
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