NCLAT dismisses plea to initiate insolvency proceedings against APL Metals
Simultaneously, the NCLAT upheld the order of the National Company Law Tribunal (NCLT), which had earlier dismissed a similar petition.
A two-judge bench of the NCLAT observed that the finding of the NCLT is correct that corporate borrower APL Metals has raised a “verifiable dispute” in respect of the debt claimed by Sensing.
In addition, Sensing had entrusted the loan to HSBC Bank, which has not involved itself in the proceedings under the Insolvency and Bankruptcy Code (IBC). Therefore, this petition is not worthy of consideration. The bench said that the reasons given by the NCLT are correct and there is no need to interfere.
Earlier on October 15, 2019, the Kolkata Bench of the NCLT dismissed Sensing’s plea holding that the contention on this claim appears substantive and hence the petition for initiation of insolvency proceedings under Section 9 is not maintainable.
This decision was challenged by Sensing in the NCLAT, where it faced failure.
