NEW DELHI: Ex-promoter of Rolta India Kamal K Singh is trying to use the provision of one-time-settlement to get the control back of the company, which is undergoing insolvency proceedings in the Mumbai-bench of National Company Law Tribunal (NCLT).
Singh recently managed to get a stay from the National Company Appellate Tribunal (NCLAT) against Mumbai NCLT order admitting insolvency application against Rolta India, a multinational IT services company.
The insolvency application was moved on 26 February by an ex-employee – Dinesh Gupta – who was not paid salaries for 6 months (January-June 2019), leave encashment and gratuity totaling Rs 10.42 lakh. The NCLT admitted the insolvency application on 13 May 2021 and appointed Vandana Garg as the interim resolution professional.
However, ex-promoter Kamal K Singh moved NCLAT against the NCLT order and claimed in the appellate tribunal that soon after the NCLT order was passed, he and insolvency applicant had settled their dispute and have moved application to settle under Section 12A of the Insolvency and Bankruptcy Code (IBC).
However, the interim resolution professional has opposed the settlement move saying that she has received various claims of huge amounts from different claimants. The IRP also claimed that the various claimants are opposing the effort to settle as there are huge debts owed by Rolta India.
Accordingly, NCLAT passed an order on 31 May 2021 staying the constitution of the committee of creditors until 28 June, 2021, and has directed the NCLT to decide the withdrawal application when filed. Subsequently, the withdrawal application was filed by Dinesh Gupta on 2 June 2021 stating that his matter is settled with erstwhile promoter Kamal K Singh in NCLT Mumbai.
The IRP now blames the ex-promoter of Rolta India for taking advantage of IBC regulations under Section 12A to delay the process. This petition is pending for hearing on 11 June 2021 in NCLT Mumbai.
According to a lawyer representing the IRP, Kamal K Singh is now putting pressure on the IRP to not proceed with the insolvency process and incur any expenses.
Rolta India has total debt of more than Rs 7,500 crore, both secured and unsecured debt.
According to sources close to the development, the company has a current employee strength of more than 200 employees, however, ex-promoters have reached settlement with only 24 employees.
It is also claimed that Rolta India has recorded an exceptional write off of Intellectual Assets to the tune of Rs 2165 crores as on 30 June 2020 and posted a loss of Rs 2130 Crores for the same quarter. It is claimed the write-off was part of an attempt by the ex-promoters to avoid making payments to the creditors.
This is the second time insolvency application has been admitted against Rolta India. In 2019, Value Partner Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund -- claimed a default of around Rs 1,060 crore. The NCLT, on admission of the petion had earlier appointed an interim professional of the company. However, the Bombay High Court has on technical ground set aside the insolvency proceedings.