The National Company Law Tribunal (NCLT), Chennai bench, has ordered initiation of insolvency resolution proceedings against water technology firm VA Tech Wabag.
The petition was filed by Chennai-based construction firm Consolidated Construction Consortium (CCCL) under the Insolvency and Bankruptcy Code 2016 for non-payment of dues.
NCLT has appointed Pathukasahasram Reghunathan Raman as interim resolution professional (IRP) to carry out the proceedings within the stipulated time of 180 days. Both firms had a contractual dispute in terms of payment of ₹1.5 crore and CCCL had sought respite under the bankruptcy code.
On September 14, the Chennai bench of the NCLT had given VA Tech Wabag 15 days’ time to settle the dues along with interest. The bench had also said if the issue was not settled, CCCL’s insolvency plea would be accepted.
When the matter came up on October 6, VA Tech Wabag’s counsel informed the bench that the firm was willing to pay only 50% of the principal amount. With CCCL’s counsel opposing the submission, the NCLT ordered initiation of insolvency proceedings.
Chennai-based VA Tech Wabag, a listed company, is involved in various water treatment projects in India and abroad.
