Nirmal Lifestyle postpones NCLAT on filing for bankruptcy

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Mumbai: Nirmal Lifestyle has appealed to the National Company Appellate Law Tribunal (NCLAT) against a recent order by the National Company Law Tribunal (NCLT) bank in Mumbai that allowed the company to file for bankruptcy. As a corporate debtor, the company had failed to make a payment of Rs 286 crore under the facilities granted to it.
In his appointment dated August 5, posted on Wednesday, the NCLT had appointed chartered accountant Ajit Gyanchand Jain as its Interim Resolution Professional (IRP) to run the company’s day-to-day operations. The move took place at the request of the financial creditor IDBI Trusteeship Services under the Insolvency and Bankruptcy Act (IBC) of 2016.
Ashok Paranjpe, managing partner at MDP & Partners, who are lawyers for Nirmal Lifestyle, confirmed the appeal had been filed and stated that dispute settlement consent forms had been signed between the financial creditor and the company. The appeal is based on the fact that the NCLT, despite the execution of the settlement conditions, issued temporary injunctions and allowed the bankruptcy petition directed against it.
In its decision, the NCLT bank of judicial member HV Subba Rao and technical member Chandrabhan Singh, after hearing the lawyers Rohit Gupta for IDBI and Simil Purohit for Nirmal, granted the financial creditor’s defense and initiated the bankruptcy process (CIRP).