The National Company Law Appellate Tribunal (NCLAT) at Delhi has recently rejected an MSME company’s plea against insolvency proceedings, noting that it had failed to invoke the MSME rehabilitation framework at the appropriate stage.
The Bench of Officiating Chairperson Justice Yogesh Khanna and Technical Members Barun Mitra and Ajai Das Mehrotra observed that the company had lost its MSME status on March 31, 2021.
It had also failed to respond to the bank’s SARFAESI notice or apply under the rehabilitation framework and was therefore unfit for any relief.
“Thus, considering the law stated above, we find no reason to upset a reasoned order passed by the Ld. Adjudicating Authority; firstly as the M/s. S.S. Aluminium Pvt. Ltd. had lost…