The National Company Law Tribunal (NCLT) has directed Moser Baer Solar Ltd to go under liquidation, as the debt-ridden company failed to get any resolution plan from any firm within the mandated 270 days.
The principal bench of NCLT, headed by President Justice M M Kumar, has directed the company to go under the liquidation on May 30 and appointed a liquidator for the process.
Moser Baer Solar is a subsidiary of optical storage media maker Moser Baer India Ltd (MBIL), which is also facing liquidation.
“In the factual background and in the absence of any resolution plan and for want of time beyond statutory CIRP (corporate insolvency resolution process) period, there is no other alternative but to order for liquidation of the corporate debtor,” said the NCLT.
The tribunal has appointed Arvind Garg as the liquidator for the company and directed him to ensure that the business of Moser Baer Solar is continued during the liquidation process.
NCLT has also directed the liquidator to “submit a preliminary report to the adjudicating authority (NCLT) within 75 days from the liquidation commencement date.”Insolvency was triggered against Moser Baer Solar after the NCLT had on November 14, 2017, admitted the plea filed by Central Bank of India.
During the CIRP, Moser Baer Solar’s liquidation value was assessed at Rs 72.42 crore.
On the request of the company’s resolution professional, Moser Baer Solar’s insolvency period was extended to another 90 days on April 23, 2018, to 270 permissible days under the Insolvency and Bankruptcy Code.
However, despite several advertisement inviting expression of interest, the company’s RP failed to receive any resolution plan and mandatory period of 270 days lapsed.
Source: Business Standard