Hyderabad High Court: Anrak Aluminum Limited will have to face NCLT process

HYDERABAD: In a major setback to Anrak Aluminum Limited, the Hyderabad High Court on Thursday stayed an order of a single judge on the State Bank of India moving the National Company Law Tribunal even after the petitioner company agreed to pay Rs 1,275 crore to the consortium of banks as a one-time settlement.

A division bench comprising Chief Justice Thottathil B. Radhakri-shnan and Justice S.V. Bhatt was dealing with an appeal by the RBI challenging the single judge order passed on September 9. Counsel for the RBI said that the petitioner company would not lose anything if the case had been moved before the NCLT.

Counsel for Anrak said that the bank consortium would also not benefit with the process of insolvency before the NCLT. He said that the lead banker has agreed for the one-time settlement. While granting stay on the single judge order for three weeks, the bench left the insolvency to the NCLT.