NCLT Admits India Steel Works For Insolvency Resolution

India’s bankruptcy court admitted India Steel Works Ltd. for insolvency resolution following an application by its operational creditor Stecol International Private Ltd.

The Mumbai bench of the National Company Law Tribunal (NCLT) also appointed Vallabh Sawana as the listed steelmaker’s interim resolution professional.

Stecol International had sought initiation of corporate insolvency resolution process (CIRP) against the company alleging a default of 2.6 crore rupees ($311,457).

“After considering and perusing the facts and circumstances of the present case, we are of the considered view that the petitioner has been able to establish that there is an existence of operational debt, which was due and payable, and there is a default committed by the corporate debtor,” Judicial Member Reeta Kohli and Technical Member Madhu Sinha said in an order dated 8 May.

On 9 May, India Steel Works said it is in the process of filing an appeal at the National Company Law Appellate Tribunal (NCLAT) for an urgent relief in the matter.

The Mumbai-based steelmaker has a total production capacity of 180,000 tons per annum and its plants are located at Navi Mumbai, Savroli and Khopoli, according to its website.

The company employs more than 1,000 people and workers across three factories, which are spread across a land area of 160,000 square meters, it said.

Note: $1 = 83.4787 Indian rupees

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