NCLAT closes Mcleod Russel insolvency proceedings after settlement with financial creditor

The National Company Law Appellate Tribunal (NCLAT) has closed the Corporate Insolvency Resolution Process (CIRP) against Mcleod Russel India, the Kolkata-based tea plantation company after the company and the financial creditors submitted in the appellate tribunal that the matter has been resolved between the two parties.

Mcleod Russel in an exchange filing on 16 May 2023 said: “..the Hon’ble National Company Law Appellate Tribunal, Principal Bench, New Delhi (NCLAT) vide its order dated 15th May 2023 received by us today, has taken on record the Settlement Agreement between the parties and has closed the Corporate Insolvency Resolution Process (CIRP) initiated by order dated 10th February 2023 and the said order has been set aside. The appeal is also disposed accordingly.”

The insolvency application against the company was filed in the Kolkata Bench of the National Company Law Tribunal (NCLT) by IL&FS Infrastructure Debt Fund. The NCLT admitted the application on 10 February 2023.

Mcleod Russel had defaulted on the payment of Rs 347 crore to IL&FS Infrastructure Debt Fund. The total default amounts include Rs 252 crore as the principal amount and Rs 95 crore as the interest accrued.

The NCLT had appointed Ritesh Prasad Adatiya as the interim resolution professional.

The interim resolution professional has started the process and asked creditors to submit their claims. Lenders had submitted claims of Rs 3,300 crore of which Rs 2,400 were from the financial creditors. However, promoters of Mcleod Russel filed an appeal on 22 February against the NCLT order allowing the insolvency petition. The

A Supplementary Affidavit was filed by promoters of the group whereby an agreement between the parties dated 5 May 2023 has been brought on record. Promoters of Mcleod Russel submitted in the NCLAT that a considerable amount of expenses has been paid and if any amount is unpaid, that will be taken care of.

Also See: Insolvency proceedings begin against Mcleod Russel