Rolta India is back in insolvency court, this time for defaulting on a payment of Rs 1,413 crore
After multiple failed attempts earlier, Rolta India will again face insolvency proceedings after the latest insolvency application filed by Union Bank of India against the company has been admitted by the Mumbai bench of the NCLT.
This time Rolta India, a provider of IT solutions, has been dragged to the insolvency court for defaulting on a payment of Rs 1,413 crore to a consortium of lenders comprising Union Bank of India and Bank of India.
The NCLT admitted the insolvency petition on 19 January 2023 following which the Board Meeting of the company scheduled to be held on 21 January 2023 to consider, approve and take on record, Unaudited Consolidated & Standalone Financial Results of the Company for the quarter ended June 30, 2022 and quarter and half year ended September 30, 2022 stands cancelled, Rolta India said in the exchange filing.
Rolta India had opposed the insolvency petition by Union Bank of India citing the application was incomplete and defective, the Petitioner had failed to state the date of default.
However, the NCLT in its order admitting the petition said that the application made by the Financial Creditor – Union bank of India — is complete in all respects as required by law.
“It clearly shows that the Corporate Debtor is in default of a debt due and payable, and the default is in excess of minimum amount stipulated under section 4(1) of the IBC. Therefore, the debt and default stands established and there is no reason to deny the admission of the Petition. In view of this, this Adjudicating Authority admits this Petition and orders initiation of CIRP against the Corporate Debtor,” read the order of NCLT.
Mamta Binani has been appointed the interim resolution professional in the case by NCLT.
Earlier in a couple of occasions, insolvency proceedings was started against Rolta India by other creditors. In May 2021, NCLT had admitted insolvency petition against Rolta India moved in by an ex-employee. The matter was settled under Section 12A in August 2021.
Before that Value Partner Greater China High Yield Income Fund and Pinpoint Multi-Strategy Fund in 2019 had filed an insolvency petition claiming a default of around Rs 1,060 crore. However, the Bombay High Court had set aside the insolvency proceedings on technical ground.
Rolta is a provider of IT solutions to different set of clients, including Federal and State Governments, in defence and homeland Security, utilities, power, financial services, manufacturing, retail, and healthcare.
The company made a net loss of over Rs 1,000 crore in FY22 on a revenue of Rs 38 crore. In the previous year, the company had reported net losses of over Rs 3,000 crore.
At the end of FY22, the company had total debt of Rs 5,700 crore with Union Bank of India and Bank of India accounting for over Rs 3,000 crore of the total loans.
