The Chennai Bench of the National Company Law Tribunal (NCLT) has ordered liquidation of The Jeypore Sugar Company Ltd, which owed about ₹475 crore to banks. Last year, bankruptcy proceedings were initiated against the company in a case filed by IDBI Bank Ltd.
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As of March 12, 375 days have been completed since the commencement of insolvency proceedings, which is beyond the stipulated period of 330 days. The NCLT refused to grant additional time for finding a suitable bidder for revival of the company, noting that no plan has been received till date and there is no exceptional circumstances which has arisen to grant the extension.
As of 2019, Jeypore owed ₹199.8 crore to IDBI Bank, ₹103.7 crore to Bank of India, ₹71.4 crore to Pridivi Asset Reconstruction and Securitisation, ₹44.3 crore to Bank of Baroda, ₹36.9 crore to Indian Overseas Bank and ₹18.4 crore to District Cooperative Central Bank.
Besides, it has dues to other vendors and employees.
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The NCLT also noted that the Liquidation Process Regulations contemplates that a period of 90 days has to be provided for completion of a compromise or arrangement from date of order of liquidation. Prospective bidders can file their plan in this window, it noted.
According to sources, a compromise scheme is being worked out for Jeypore and a lot of bidders have shown interest.
The NCLT has allowed current resolution professional V. Venkata Sivakumar to continue as liquidator.