National Company Law Appellate Tribunal has set aside an order passed by the National Company Law Tribunal that had admitted insolvency proceedings against Embassy Development, holding that the application filed by Canara Bank was barred under provisions of Section 10A of the Insolvency and Bankruptcy Code.
The Delhi bench of the NCLT had, in December of the previous year, directed the initiation of a corporate insolvency resolution process against Embassy Development following a plea by Canara Bank. The lender had claimed that the real estate firm owed approximately INR 200 crore as a corporate guarantor for a loan extended to Indiabulls Realtech, now known as Simar Thermal Power.
The…