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NCLT initiates insolvency proceedings against ABW Infrastructure

NCLT initiates insolvency proceedings against ABW Infrastructure

The National Company Law Tribunal (NCLT) has initiated a corporate insolvency resolution process against ABW Infrastructure under Section 7 of the Insolvency and Bankruptcy Code 2016. The court has appointed Anand Chandra Swain as the interim resolution professional (IRP) for the case. It directed the IRP to make a public announcement within three days of the order. Bipn Industries pleaded that it had invested Rs 91.54 lakh in ABW Gateway Tower. The return on investments was to occur by way of monthly assured returns of Rs 50 per sq ft and thereafter, lease rent arising out of the proposed office space to be allotted and delivered and transferred in their name.

The memorandum of understanding (MoU) was signed in July 2011 while the returns on investment were to start in August 2011. The financial creditor received assured returns till December 2014 but since then no assured returns have been paid by the builder. The court has ordered a stay on all ongoing/pending suits or proceedings against ABW Infrastructure. It has also prohibited the company from transferring, encumbering or disposing of its assets. Any foreclosure of a company's assets or recovery of any property by an owner or lessor where such property is occupied by or in the possession of the company has also been prohibited. The directors, promoters, and management of the company have been ordered to extend their co-operation to the IRP. Bipin Industries has been ordered to deposit Rs 2 lakh to the IRP to meet the expenses to perform his function within three days of the order.

Source: Economic Times


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