National Company Law Tribunal: Union Bank of India, the Financial Creditor initiated Corporate Insolvency Resolution Process against Era Engineering Infra Ltd, the Corporate debtor under the Insolvency and Bankruptcy Code, 2016. The main question for consideration before the Special Bench, NCLT, New Delhi was whether the process under the Insolvency and Bankruptcy Code, 2016 could be triggered in the face of pendency of the winding up petitions or is it to be considered as an independent process. NCLT reserved its order on whether the insolvency proceedings were maintainable against Era Infra Engineering as there were several winding-up petitions pending before the Delhi High Court for consideration.
The counsel appearing on behalf of Era Infra had argued that if the winding-up petitions are admitted by the High Court, the application under Section 7 of the Insolvency and Bankruptcy Code filed by Union Bank would become obsolete. Era Infra Engineering Ltd, the corporate debtor defaulted in payment of 681.04 crores in terms of loan in addition to External Commercial Borrowing of USD 11,971,939.12 as on 31.5.2017.
While transferring the issue of maintainability of the insolvency petition to the Larger Bench, NCLT reserved its decision on the jurisdictional issue as no order had been passed in the matter of Era Infra with regard to the several petitions filed against them in the Delhi High Court that lay pending till date. [Union Bank of India v. Era Infra Engineering Ltd., No. IB-190(PB)/2017, decided on 21.8.2017]