Sadbhav Engineering Dodges Another Insolvency Bullet
Sadbhav Engineering settles the issue of outstanding dues with its operational creditor Automark Industries (India)
(The Corner Office Journal) -- Sadbhav Engineering Ltd. dodged another insolvency process after the National Company Law Appellate Tribunal (NCLAT) set aside the bankruptcy court’s latest insolvency order against the company.
The National Company Law Tribunal’s (NCLT) Ahmedabad bench on 12 July had admitted an insolvency petition against the company filed by its operational creditor Automark Industries (India) Private Ltd. for default of 2.29 crore rupees ($274,170), Sadbhav Engineering said in a stock exchange announcement today.
Sadbhav Engineering, which didn’t reveal this information earlier, said the order copy was received by the company on late Friday evening.
As the matter was already settled with Automark, the company filed an application before the NCLAT for withdrawal of the case, it added.
Sadbhav Engineering said it sought an urgent hearing and the case was listed for today (15 July) at 2:30 pm. The NCLAT’s principal bench in New Delhi heard the matter today and set aside the NCLT’s insolvency order as the matter was mutually settled, it noted.
Following the latest development, the initiation of corporate insolvency resolution process (CIRP) against Sadbhav Engineering stands canceled and the company ceases to be under the CIRP, according to the statement.
Sadbhav Engineering was represented by senior advocate Navin Pahwa, assisted by a team from Agarwal Law Associates.
The NCLAT also directed to pay the cost of interim resolution of 250,000 rupees within two weeks.
In April 2024, Sadbhav Engineering came out of a similar situation after the company and another operational creditor S.S. Infra reached a settlement, and the bankruptcy appellate tribunal set aside the NCLT’s insolvency order against the company.
The NCLT had admitted Sadbhav Engineering, founded in 1988 by Vishnubhai Patel, for insolvency resolution on 22 April after S.S. Infra filed a petition against the company, claiming a default of about four crore rupees related to a previously completed work.
Note: $1 = 83.5240 Indian rupees
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