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The National Company Law Appellate Tribunal (NCLAT) has shut the insolvency proceedings initiated against motor and generator manufacturing company Jyoti Ltd after settlement of claims raised by financial creditors.
A two-member bench, including Acting Chairperson Justice B Lal Bhat, allowed the plea of the company after observing that it has already paid Rs 16.5 crore as per the compromise proposal.
State Bank of India, the financial creditor of the company, has also filed an affidavit before the appellate tribunal stating therein that the entire settlement amount of Rs 16.50 crore stands received from Jyoti.
"In view of the above the claim of the financial creditors having been satisfied, the appeal is allowed to be withdrawn as no issue survives for consideration," said NCLAT.
It further said: "The proceeding pending before Adjudicating Authority (NCLT) shall stand closed. The Corporate Debtor (Jyoti) is released from the rigour of CIRP (corporate insolvency resolution process)."
NCLAT has directed this order to be communicated to the Adjudicating Authority.
The Ahmedabad bench of NCLT had last year in November admitted an insolvency plea filed against the BSE-listed company by SBI.
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