Sadbhav Engineering Comes Out Of Insolvency Process

NCLAT sets aside insolvency order due to the settlement between the parties
Sadbhav Engineering Comes Out Of Insolvency Process

Sadbhav Engineering Ltd. said it is out of insolvency process as the bankruptcy appellate tribunal set aside the National Company Law Tribunal’s (NCLT) insolvency resolution order against the company.

The National Company Law Appellate Tribunal’s (NCLAT) principal bench in New Delhi set aside the NCLT’s insolvency order against the company today due to the settlement between the parties, Sadbhav Engineering said in a stock exchange announcement.

Due to the NCLAT’s order, Sadbhav Engineering’s corporate insolvency resolution process (CIRP) stands canceled, and the company ceases to be under CIRP, it added.

The NCLAT also directed to pay the cost of interim resolution, if not paid already.

The NCLT admitted Sadbhav Engineering, founded in 1988 by Vishnubhai Patel, for insolvency resolution on 22 April after its operational creditor S.S. Infra filed a petition against the company, claiming a default of about four crore rupees ($480,076) related to a previously completed work.

On 24 April, Sadbhav Engineering said it was taking steps to clear the dues of S.S. Infra and for the withdrawal of insolvency case.

The company, which is involved in the construction and development business, also said it was taking urgent steps to pay the entire balance amount of about 2.52 crore rupees as a full and final settlement on the same day.

Note: $1 = 83.3201 Indian rupees

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