NCLAT Stays Insolvency Process Admitted By NCLT Against Deccan Charters
NCLAT Stays Insolvency Process Admitted By NCLT Against Deccan Charters
The next hearing has been scheduled for 26 April
The Chennai branch of the National Company Law Appellate Tribunal (NCLAT) has stayed the insolvency process initiated against the Deccan Charters, the aircraft and helicopter maintenance and management company, till 26 April.
In the Sanjay Saihgal, Deccan Charters v. Krone Finstock case, a Coram of M Venugopal (judicial member), Sharad Kumar Sharma (judicial member) and Jatindranath Swain (technical member) sought the response of Krone Finstock (creditor), which filed the insolvency application.
The tribunal’s order read, “The Interim Resolution Professional (IRP) is not to proceed till the next hearing on 26 April 2024.”
On 05 April, the Bengaluru bench of the National Company Law Tribunal (NCLT) admitted Deccan Charters into the Corporate Insolvency Resolution Process (CIRP) over a default of Rs.9,82,24,077.
However, the order was challenged before the NCLAT by the now-suspended director of Deccan Charters claiming that the NCLT order should be set aside as there was no debt payable.
The appeal stated that the entire business built by Deccan's promoters over three decades would be rendered nugatory by the NCLT order. The company argued that it comprised over 200 employees and an estimated revenue of Rs.80 crores and operated and maintained 40 aircraft and helicopters from over 12 Indian locations.
