NEW DELHI: Government-owned Container Corporation India Ltd (Concor) has got a relief from the National Company Law Appellate Tribunal (NCLAT) after the tribunal stayed an NCLT order allowing the initiation of a corporate insolvency resolution process against the company.
Concor informed in an exchange filing that the NCLAT has stayed the operation of the final order and judgment dated 12 July 2023 issued by NCLT and directed the matter to be listed for further hearing on 4 September 2023.
The container and logistics firm -- Concor -- is facing insolvency procedures after one of its vendors moved an insolvency plea against the company for not paying a sum of R 87.5 crore. The amount involved is an arbitral award that the vendor -- Roadwings International – won in an arbitration court. However, Concor has moved Delhi High Court against the arbitral award.
Concor had earlier said that the NCLT admitted the insolvency application for seeking the amount awarded by an arbitral tribunal despite the fact that the said arbitral award was pending challenge from the company before the Delhi High Court.
The government of India holds 54.8% stake in Concor, and it is looking to divest 30% stake in the company. The insolvency case against Concor could further delay the government’s efforts to sell part of its stake in the company. Concor is a listed company and its shares are trading around R 690 a piece. At the current market price, the government will be hoping to realise R12,000 crore from the sale of 30% stake in the company.