 "NCLT")
A recent National Company Law Tribunal (NCLT) order has sent corporate lawyers and promoters to seek guidance from the higher courts as the NCLT said the personal properties of promoters can be auctioned even when the process of insolvency is pending before it.
The petition was filed by Schweitzer Systemtek India, invoking Section 10 of the Insolvency and Bankruptcy Code for a default of Rs 4.5 crore. The suit was initiated by the promoter himself to protect the firm's interests after Dhanlaxmi Bank sold the loan to Phoenix ARC (asset reconstruction company). The NCLT Mumbai bench said the promoters cannot
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