The National Company Law Appellate Tribunal (NCLAT) has reportedly set December 6 as the date of next hearing on an insolvency plea filed by IDBI Bank seeking insolvency proceedings against ZEEL. The tribunal adjourned the hearing of Wednesday after the counsel sought time to complete the pleading.
In its plea, IDBI Bank has challenged an order passed by the National Company Law Tribunal (NCLT), which, on May 19, 2023, that stops insolvency plea against ZEEL on the ground that it is barred under Section 10A of the Insolvency & Bankruptcy Code (IBC).
NCLT has said that ZEEL, which is the corporate guarantor for a loan taken by Siti Networks, has defaulted. But the default has been committed during the timeline specified under section 10A of the IBC. According to NCLT, Section 10A bars absolutely and forever, the filing of any application under Sections 7, 9 and 10 of the Code, for defaults committed on or after March 25, 2020, up to March 25, 2021.
Siti Networks has taken a loan of Rs 150 crore. On March 5, 2021, IDBI Bank invoked the guarantee provided by ZEEL and claimed an amount of Rs 149.60 crore in default.
