Siva industries' IBC proceedings: Lenders to appeal against NCLT order

The lenders plan to move the NCLAT as NCLT slammed the banks repeatedly for not voting on the one time settlement proposal made by the promoters

The shareholders of Siva Industries and the Indian lenders are planning to appeal against the NCLT’s Chennai bench order which has rejected the withdrawal of bankruptcy proceedings against the company while setting aside the “commercial wisdom” of the lenders and instead exercising its "judicial wisdom."

The NCLT had said the application made by RCK Vallal, one of the shareholders of the company, is not conforming to the Section 12A of the Insolvency and Bankruptcy Code and sent the company for liquidation. As per the plan accepted by the CoC, Indian lenders, led by IDBI Bank, are going home with recovery