NCLAT has set aside insolvency proceedings against Ligare Aviation, ruling that Religare Enterprises” loan was ”round-tripping of money,” not genuine financial debt.
New Delhi, Jun 7 (PTI) The National Company Law Appellate Tribunal (NCLAT) has set aside insolvency proceedings against Ligare Aviation Ltd, holding that the NCLT erred in admitting the plea filed by Religare Enterprises without properly examining the nature of the underlying transactions, which was “only round tripping of money” and not “any genuine financial transaction”.
In a strongly worded order, the appellate tribunal said the material on record “clearly proves” that there was no financial debt disbursed by the financial creditor (Religare Enterprises) to the…