The National Company Law Appellate Tribunal (NCLAT) at New Delhi on Tuesday imposed a cost of Rs. 15 lakh on Astral Agro Ventures, a Prospective Resolution Applicant (PRA), for obstructing the Corporate Insolvency Resolution Process (CIRP) of Megi Agro Chem Ltd.
The tribunal observed that the insolvency resolution process “cannot be reduced to a Tom & Jerry show” where a PRA, who doesn’t have any right to challenge continuously seeks extensions only to derail the resolution.
The tribunal described the appellant’s conduct as “pretentious” and “loaded with well-concealed chicanery.”
A bench of Judicial Member Justice N Seshasayee and Technical Member Arun Baroka noted,
“When on facts locus standi of the appellant is…