The National Company Law Appellate Tribunal (NCLAT) has set aside the order of the NCLT’s Mumbai bench, dismissing a plea to initiate corporate insolvency resolution process (CIRP) against Mittal Corp Ltd and directed it to decide afresh “expeditiously”.
A three-member bench of the appellate tribunal observed that the Mumbai bench of the NCLT had dismissed PNB’s plea on the basis of a circular issued by the Reserve Bank of India (RBI) on February 12, 2018, which was not applicable to the facts of the instant case.
“In the absence of any cogent evidence to show that the Appellant (PNB) has filed the Application only pursuant to the ‘Circular’ issued by Reserve Bank of India, which we hold at the outset, was not applicable to the facts of the instant case, it was not open to the Adjudicating Authority (NCLT) to reject the application on this ground,” it said.
The NCLAT, in its judgement, noted that it is an admitted fact that the appellant filed an application under Section 7 on March 20, 2018, much before the 180 days.
“We set aside the Impugned Order dated December 20, 2019 and remit the case to the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench, with a direction to decide the Admission of the Application on merits as expeditiously as practicable,” the order said.