NCLAT asks NCLT to decide on liquidation of Lakshmi Cotsyn within 10 days

The National Company Law Appellate Tribunal (NCLAT) has asked the Allahabad bench of the NCLT to decide within 10 days on the liquidation of Kanpur-based textile manufacturer Lakshmi Cotsyn.

A two-member bench comprising Justice Bansi Lal Bhat and Shreesha Merla observed that plea for liquidation of Lakshmi Cotsyn is pending before the National Company Law Tribunal (NCLT) on the pretext of one or the other miscellaneous application being filed in the matter.

"Such conduct on the part of different characters cannot be permitted to thwart the course of insolvency resolution proceedings under I&B Code," it said.

"Having regard to the object of the statute and to protect the interests of all stakeholders, we request the Learned Adjudicating Authority (NCLT) to take up the liquidation application for disposal at the earliest and make all possible endeavours to pass appropriate orders thereon within 10 days," said the NCLAT order dated March 3.

The NCLAT direction came on a plea filed by a member of the Committee of Creditors (CoC) of the company.

It had submitted that liquidation application before NCLT has been pending for more than a year now.

In June 2018, NCLT had directed to initiate insolvency proceedings against the firm on a plea filed by a consortium of about 10 lenders, led by Central Bank of India.

As a suitable buyers could not be found, the CoC of Lakshmi Cotsyn had approved liquidation of the company with 94.75 per cent votes.

Following this, the resolution professional of the textile firm had filed an application before NCLT for liquidation.