Insolvency Process Can Now Be Proceeded Against HDIL Without Hindrance

New Delhi: Insolvency process can now be proceeded once again against embattled real estate firm HDIL as the e National Company Law Appellate Tribunal (NCLAT) has vacated its interim order which it had passed on 26 September staying the constitution of 'Committee of Creditors'.

Bank of India had approached NCLT against the developer with an insolvency plea when HDIL defaulted on repayment of dues of Rs 522 crore to the Bank. The NCLT had admitted the plea in August 2019. Various other banks- Syndicate Bank, Indian Bank, Corporation Bank and Dena Bank had also filed similar pleas against HDIL. 

The realty firm later filed an appeal against the NCLT order which admitted the insolvency petition against the company at NCLAT. Following this, the NCLAT had ordered an interim stay against the constitution of the committee of creditors in September 2019.

The NCLAT has also ordered the Interim Resolution Professional to ensure that HDIL remains an on-going business concern. The IRP can take help of the suspended Board of Directors and the employees of HDIL in carrying out his duties.

The NCLAT has also ordered that the bank accounts of the ‘Corporate Debtor’ will permitted to remain operational for everyday functioning of HDIL like payment of salaries of employees and workmen.

The realty firm owed  Rs 2,000 crore to a clutch of banks as of March 31, 2019.