New Delhi: The National Company Law Tribunal (NCLT) has ordered the state-run National Textile Corporation (NTC) to file for insolvency after accepting a plea from one of its operating creditors alleging a default of around Rs 14 lakh.
The NCLT's New Delhi court has also appointed Amit Talwar as an interim resolution professional (IRP), suspended NTC's board of directors, and ordered a moratorium against the PSU under the Insolvency and Bankruptcy Code (IBC). NTC's claims were also dismissed by a two-member NCLT bench, which ruled the argument it raised over the due amount demanded by its operational creditor was essentially a "moonshine dispute" and that payment default had happened.
Insolvency procedures against a central government-owned public sector unit (PSU) have been filed for the first time since the code went into effect. The Ministry of Textile, NTC is under the purview of the Ministry of Textile, Government of India. It has 23 mills in India that produce yarn and fabric. Hero Solar Energy Pvt Ltd, through its counsel Pallav Mongia, filed a case with the NCLT alleging a default of Rs 13.84 lakh for two contracts.
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