ET: Corporate insolvency resolution process initiated against Bigmoon Buildcon

4 September 2019: The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against Delhi-based Bigmoon Buildcon under Section 7 of the Insolvency and Bankruptcy Code 2016.

The court has appointed Ajay Goyal as the interim resolution professional (IRP) for the case. It directed the IRP to make a public announcement within three days of the order.

According to the plea filed by the financial creditor, Bigmoon Buildcon’s promoter approached him to arrange for Rs 6 crore for which he was to receive Rs 11 lakh as service charge. This service charge was later turned into investment through a memorandum of understanding between both parties. The applicant now claims Rs 35.87 lakh due amount which the builder has not paid.

The court ordered a stay on all ongoing/pending suits or proceedings against Bigmoon Buildcon. It has also prohibited the company from transferring, encumbering or disposing of its assets. Any foreclosure of company’s assets or recovery of any property by an owner or lessor where such property is occupied by or in the possession of the company has also been prohibited.

The directors, promoters and management of the company have been ordered to extend their co-operation to the IRP.

The financial creditor has been ordered to deposit Rs 2 lakh to the IRP to meet the expenses to perform his function within three days of the order.

The Economic Times reported

Categories: General News, India Bankruptcy

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