In a recent ruling, the National Company Law Appellate Tribunal (NCLAT), Principal Bench in New Delhi, dismissed an appeal filed by Sarang Kumar Wadhawan, a shareholder of Privilege Power Infrastructure Limited (PPIL), and upheld the initiation of the Corporate Insolvency Resolution Process (CIRP) for a default of over Rs. 138 crore.
The appeal was against an NCLT order admitting a Section 7 application by Unity Small Finance Bank (formerly Punjab and Maharashtra Co-operative Bank). The debt originated from an overdraft facility availed by PPIL from 2007 to 2013, with the account being declared a Non-Performing Asset (NPA) in 2012.
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Wadhawan,…