NCLAT rejects plea to start insolvency proceedings against Tata Chemicals

NCLAT observed that the NCLT has rightly dismissed the plea as Allied Silica has failed to prove the operational debt and its default

The National Company Law Appellate Tribunal (NCLAT) has set aside a plea challenging an NCLT order that rejected the petition to initiate insolvency proceedings against Tata Chemicals for claimed operational debt of Rs 68.44 crore.

A three-member NCLAT bench upheld the order of the Mumbai bench of the National Company Law Tribunal (NCLT) that dismissed the plea of Allied Silica to initiate insolvency proceeding against the Tata group firm.

Observing that the NCLT has rightly dismissed the plea as Allied Silica has failed to prove the operational debt and its default and further on the ground of pre-existing dispute, the appellate tribunal