3 May 2019: The city-based software firm Rolta India has become one of the first defaulters to come out of the bankruptcy proceedings on the basis of the April 2 Supreme Court order, with the Mumbai bench of the NCLT dismissing Union Bank’s plea against the company.
The NCLT has dismissed the insolvency plea against the company by the state-run Union Bank of India which had made a claim of more than ₹1,200 crore from the company.
A Mumbai bench of the National Company Law Tribunal has held that Union Bank’s bankruptcy plea is not maintainable after the apex court had squashed the new NPA recognition norms brought in by the central bank on April 2.
A bench comprising VP Singh and R Duraisamy observed that Union Bank had approached the tribunal on the basis of the February 12, 2018 Reserve Bank circular but the same was declared ultra vires by the Supreme Court.
On the basis of the Supreme Court, the petition is not maintainable and the matter is thus dismissed, the bench said.
The now-squashed RBI circular had made even one-day default as an NPA and make provisions and if the account is not serviced in the next 90 days begin bankruptcy proceedings.
Following this Rolta moved the apex court on April 12, questioning the maintainability of the bankruptcy petition against it and the apex court had asked the tribunal to maintain the status quo until.
Rolta owes over ₹1,200 crore to Union Bank which filed the insolvency plea. It is not immediately known who are the other lenders and how much the company owes to them at the aggregate level.