The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea challenging NCLT's order to initiate insolvency proceedings against Aditya Estates over the claims filed by ICICI Bank UK PLC.
A three-member bench of NCLAT headed by Chairman Justice S J Mukhopadhaya upheld the order of NCLT and rejected the claims of Aditya Kumar Jajodia that ICICI Bank UK PLC was not a direct financial creditor of Aditya Estates.
The appellate tribunal said that Aditya Estates in a debt asset swap agreement had undertaken obligation to repay the loans availed by Assam Oil Company from ICICI Bank UK PLC.
"We find that ICICI Bank UK PLC has successfully made out a case that it is the financial creditor of the Corporate Debtor and the Adjudicating Authority (NCLT) has rightly admitted the application under Section 7 of I&B Code," said NCLAT.
It further added:"We find no merit in this appeal. It is accordingly dismissed."