The bankruptcy court has admitted Mumbai-based trading house Frost International under the corporate insolvency resolution process and appointed Amit Chandrakant Shah as the interim resolution professional for the Mumbai-based commodity trading firm.
Bank of India had approached the National Company Law Tribunal (NCLT) after the trading house defaulted on its dues of about ₹872 crore. The company is among the country’s top 10 wilful defaulters, with a default of more than ₹3,311 crore.
The Mumbai bench of the NCLT allowed the petition filed by the lender to initiate the insolvency proceedings.
“The application made by the financial creditor is complete in all respects as required by law,” said a division bench of Justice PN Deshmukh and technical member Shyam Babu Gautam. “The debt and default stand established and there is no reason to deny the admission of the petition.”
Nishit Dhruva, managing partner of law firm MDP & Partners, appeared for the lender and argued that the resolution plan and the revised resolution plan were rejected by the bank.
Countering this, Frost International, through its lawyers, argued that the lender has declared its account ‘fraud’ only on the basis of the forensic auditor’s report, which has not taken into consideration various transactions. It said the company has already challenged the lender’s action in the Delhi High Court, where the case is still pending.
Source: Economic Times