On 23 June, the Mumbai Bench of the National Company Law Tribunal (NCLT) admitted Bank of India‘s Section 7 petition against Supreme Engineering Limited over a default of Rs. 117.50 crore, holding that Section 10A of the Insolvency and Bankruptcy Code, 2016 does not shield post-COVID defaults from insolvency proceedings.
Judicial Member Nilesh Sharma and Technical Member Sameer Kakar admitted the petition, imposed a moratorium and appointed S. Gopalakrishnan as the Interim Resolution Professional (IRP). Rejecting the Corporate Debtor’s objections based on Section 10A, limitation, pending DRT proceedings and the interim moratorium under Section 96, the Bench held:
“Furthermore, a perusal of the record and the sanction terms agreed…