Mumbai: The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed insolvency proceedings against Anil Ambani-led Reliance Communication (RCom) after the firm withdrew a challenge to such a move.
RCom will be admitted back to insolvency proceedings after the NCLAT allowed the firm to withdraw its petition challenging the NCLT order that allowed insolvency resolution process against the company.
RCom in May last year had filed a petition before the NCLAT against the NCLT order on a plea by global telecom gear maker Ericsson.
The debt-ridden telecom company has now opted to go through the insolvency proceedings.
During the proceedings of NCLAT, senior advocate Kapil Sibal representing RCom informed the bench about the company's decision to withdraw the petition against the NCLT order.
An NCLAT bench headed by Chairman Justice S J Mukhopadhaya allowed RCom to withdraw its appeal.
RCom in February 2019 had announced its decision to opt for insolvency proceedings following its failure to sell assets for paying back its lenders.
The company’s board earlier noted that despite the passage of so much time, the lenders had received zero proceeds from the proposed asset monetisation plans and the overall debt resolution process was yet to make any headway.
Following the NCLAT allowing the withdrawal, the insolvency proceedings against RCom will restart in NCLT Mumbai....