The Madras High Court has granted an interim stay on the insolvency proceedings ordered against Rayala Corporation Private Limited by the Chennai bench of the National Company Law Tribunal (NCLT).
In a statement issued in Chennai, the company said: “The management of Rayala believe that they have a substantial case on merits and are in the process of filing an appeal before The National Company Law Appellate Tribunal (NCLAT) in New Delhi shortly against such order.” The 70-year-old company said it has had large financial transactions with reputed nationalised banks and financial institutions in the past. “There has not been a single instance of default”, the statement read.
The statement clarified that the application before the NCLT in Chennai was filed by seven persons/entities of the same family and “these individuals were unsecured creditors.”
