CHENNAI: The Division Bench-I of National Company Law Tribunal (NCLT) in Chennai has refused permission to withdraw the insolvency process pending against Dugar Housing Limited at Ambattur.
Originally, the corporate insolvency and resolution (CIR) process was initiated against Dugar Housing, the corporate debtor, at the instance of Prism Johnson, operational creditor.
Prism Johnson, who had filed the insolvency application against the company, later entered into a settlement with the latter under Sec. 9 of Insolvency and Bankruptcy Code (IBC). As per the settlement deed, Dugar is to pay the dues in three instalments and liberty must be given to Johnson to revive the insolvency plea if Dugar fails to honour the pact. The company owed about `13.97 crore to six creditors, of which `5.03 crore is due to Sree Sankeshwara Foundation and Investments.
When the matter came up on December 11, K Gaurav Kumar, practising company secretary of Sree Sankheswara told the tribunal members that withdrawal proceedings cannot be confined to two parties alone. It should be open to all those who have claim with Dugar and the same cannot be withdrawn on account of any compromise.