New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Friday ordered liquidation of debt-ridden Amtek Auto as it declined lenders' request for extension of insolvency resolution process deadline.
Amtek Auto was among the first list of 12 companies which were referred by the RBI in 2017 to respective banks for initiation of insolvency process for defaults.
UK-based Liberty House was selected as the highest bidder by the committee of creditors (CoC) of Amtek Auto. However, it later backed out citing some reasons following which the lenders requested 90 days more time to find a new buyer.
A three-member bench headed by Chairperson Justice S. J. Mukhopad-haya directed the Chandigarh bench of the National Company Law Tribunal (NCLT) to pass an order of liquidation as 270 days mandated under IBC for finalising a resolution plan have already lapsed.
"We are neither inclined to give any direction as was sought for by the CoC nor to exclude any period calling for fresh Resolution Plan," NCLAT said in an order Friday.
It further said, "more than 270 days having passed, the Adjudicating Authority (NCLT) will pass appropriate order of liquidation, which will be in accordance with law."
The Insolvency and Bankruptcy Code (IBC) mandates completion of insolvency process within 180 days with an extension of 90 days, failing which liquidation has to be initiated against the corporate debtor.
NCLAT also observed that there was no extraordinary situation in the resolution process of Amtek Auto to exclude 90 days period....