NCLT Mumbai admits Union Bank's Insolvency plea against Rolta India on dues over Rs. 1,413 crore

NCLT Mumbai admits Union Bank's Insolvency plea against Rolta India on dues over Rs. 1,413 crore

The National Company Law Tribunal, Mumbai bench (in short NCLT) on 19th January, 2023 admitted the petition filed by state-owned Union Bank of India against the military-focussed software developer Rolta India for the Corporate Insolvency Resolution Process (in short CIRP).

The NCLT appointed Mamta Binani as the interim resolution professional for the listed firm.

In February, 2020 the Union Bank of India had approached the NCLT after the Mumbai-based company defaulted on dues of over Rs. 1,413 crore to the lender.

Appearing for the creditors, Counsel Rohit Gupta argued that the company owed more than Rs. 5,523 crore to its financial creditors and its admission would be deemed appropriate so that the resolution process could be initiated. He further contended that the, petition was filed almost three years ago and that it the need of the house to initiate the CIRP and save the company and its assets.

As per a stock exchange filing, the company reported a loss of Rs. 606.14 crore on revenue of Rs. 7.53 crore in fiscal year 2022.

Besides its dues to banks, Kamal Singh-promoted Rolta India also had additional senior notes (overseas borrowings) of Rs. 3,382 crore outstanding as on 31 March, 2022, according to a disclosure made by the company to stock exchanges. Last year, government-owned National Asset Reconstruction Company had offered ₹600 crore in a combination of cash and security receipts for the company.

In 2021, one of Rolta India's employees had filed a petition in the NCLT, seeking to initiate CIRP after the company failed to clear his dues. The petitioner decided to withdraw his plea after the promoters settled his dues. However, the tribunal rejected his withdrawal petition after the financial lenders opposed it.

The NCLT's detail order is yet to be published.