As many as 46 cases of insolvency have been filed at the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code 2016.
The Chennai bench started hearing insolvency-related cases from April 2017 and has been one of the most active benches.
The Centre had introduced the Insolvency and Bankruptcy Code 2016 to quickly resolve the non-performing assets problem of the banks and as part of its pledge to ensure ease of doing business.
Under the code, a bank or financial institution (called a financial creditor) that has lent money to the company or a supplier of goods to the company (called an operational creditor) can file an insolvency petition against a company for non-payment of dues.
Alternatively, the company itself (called the corporate debtor) can file for voluntary insolvency.
According to a study by Chennai-based corporate lawyer Anant Merathia, 46 cases of insolvency has been filed at the NCLT Chennai as on September 24, 2017.
During the period, the Chennai bench of NCLT had also delivered some high-profile verdicts. It had dismissed an insolvency plea against Tamil Nadu State power utility – Tamil Nadu Generation and Distribution Corporation (Tangedco) – initiated by a private power producer.
The Chennai bench had also ordered insolvency proceedings against start-up Stayzilla initiated by its vendor Jigsaw Solutions.
In another case, State Bank of India was also barred by the NCLT from selling properties of a personal guarantor during the moratorium period offered during the insolvency proceedings.
