NCLT rejects Siva Industries' debt resolution under IBC, orders liquidation

Siva Industries was admitted to the bankruptcy court on July 5, 2019

The National Company Law Tribunal (NCLT), Chennai, has rejected the debt resolution proposal of Siva Industries which was earlier cleared by IDBI Bank-led Committee of Creditors (CoC).

Slamming the lenders, the NCLT said it would go by its “judicial wisdom” rather than approving the “commercial wisdom” of the CoC. According to the plan appr­oved by the CoC, lenders were taking a ma­ssive haircut by agreeing to Rs 328 crore as settlement amo­unt, as against claims worth Rs 4,864 crore made by them.

The NCLT said the application made by RCK Vallal, one of the shareholders of the company, is not conforming to