The National Company Law Tribunal (NCLT), Chennai, has ordered insolvency proceedings against KPN Travels India Ltd., in a case filed by TVS Automobile Solutions Pvt. Ltd.
In its petition, TVS Automobile Solutions Ltd., said it supplied automobile spares, such as filters, brakes, linings, clutch plates, gear box components, tyre and tubes to KPN Travels Ltd. based on the latter’s indent. After receiving the goods, KPN failed to pay an outstanding of about ₹3.94 crore for supplies made from August 31, 2017 to December 31, 2019. Along with interest of 18% a year, the total outstanding worked out to ₹5.27 crore.
The NCLT rejected the arguments of KPN and appointed Ramachandran Balachandran as the interim resolution professional. With this, the board of directors of KPN is superseded, the NCLT added.
