The bankruptcy court on Thursday admitted two Essel Group entities Primcomm Media Distribution Ventures Ltd and Essel Homes Pvt Ltd under the Corporate Insolvency Resolution Process (CIRP) after Gnex Realtech Pvt Ltd, an affiliate entity, defaulted on its dues of Rs 260 crore where these companies provided corporate guarantee.
The Mumbai bench of the National Company Law Tribunal (NCLT), in applications filed by Indiabulls Housing Finance Ltd, also appointed Ravi Prakash Ganti as interim resolution professional (IRP) for these companies.
“We are of the considered view that the financial creditor has proved the existence of debt and default,” said the division bench of judicial member Lakshmi Gurung and a technical member Charanjeet Singh Gulati in its order against Primcomm Media Distribution Ventures. “Also, the petition filed is within limitation. Therefore, we hereby admit this company petition,” said the bench further.
Before the tribunal’s order, Indiabulls Housing Finance, through its counsel Nausher Kohli, argued that the company had sanctioned a loan of Rs 190 crore in June 2020. The corporate debtor company Gnex Realtech defaulted on its dues on September 30, 2021.
Countering Kohli, counsel Vinita Melvin, appearing for the Essel Group companies, argued that the debt has been disbursed to Gnex Realtech, not the corporate debtor. The Essel Group companies also claimed that respondents (Essel Homes and Primcomm Media Distribution Ventures) have merely pledged Genex Realtech shares as security against the loan to Gnex. The petitioner Indiabulls Housing Finance is, therefore, not a financial creditor.
However, rejecting the arguments of the respondent companies, the tribunal admitted both companies under the insolvency resolution process.
The tribunal has also put a moratorium on the companies and has restrained the institution of suits or continuation of pending suits or proceedings against the corporate debtors Essel Homes and Primcomm Media, including execution of any judgment, decree or order in any court of law, tribunal, arbitration panel or other authority.
The tribunal also restrained the company’s promoters or any other person from transferring, encumbering, alienating or disposing of the company’s assets.
Source: Economic Times