Titagarh Wagons get temporary reprieve; NCLAT halts insolvency proceedings
Titagarh Wagons Ltd gets a temporary reprieve from the National Company Law Appellate Tribunal (NCLAT) when it stayed the initiation of corporate insolvency resolution process (CIRP) against the company and has restrained the interim resolution professional from taking any further steps in this regard.
The company said in an exchange filing on 3 November 2022.
The Kolkata Bench of the NCLT on 1 November 2022 had admitted the insolvency petition filed against Titagarh Wagons by operational creditor Simplex Castings Limited, after the former defaulted on a payment of Rs 91 lakh.
The petition was filed by Simplex Castings in January 2019, and the date of default was 14 April 2018.
Titagarh Wagons has disputed the claims of Simplex Castings in its petition saying that there is a larger claim against the Operational Creditor arising out of separate transactions.
The existence of such a counterclaim is part of the claim in the proceeding before the NCLT, Mumbai Bench.
Titagrah Wagons has argued that it is entitled to adjustment of any alleged dues of the Operational Creditor (Simplex Castings) in the instant proceeding by way of a legal and equitable set off of its claim before the Mumbai Bench.
It also contended that its claim on account of refund of advance and liquidated damages is far in excess of the alleged claim of the Simplex Castings, the operational creditor.
The Kolkata bench of the NCLT had refused to accept Titagarh Wagons plea that there was any dispute with regards its outstanding dues to Simplex. It also refused to entertain Titagarh Wagons plea that there was a counterclaim against the claim of operational creditor.
Headquartered in Kolkata, Titagarh Wagons Ltd is a leading manufacturer of freight and passenger rolling stock. Established as a rolling stock foundry unit in the 1980’s, Titagarh started its journey by producing railway castings such as bogies and couplers for the Indian railways. By 1997, Titagarh had produced its first railway freight wagon.
A listed company, Titagarh group generated Rs 1,966 crore in revenue in 2021-22, and made a loss of Rs 69 lakh. In the previous year, the company had made a net loss of Rs 18.79 crore on a revenue of Rs 1,545 crore.
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