The National Company Law Tribunal (NCLT), Amaravati Bench, has admitted Canara Bank’s insolvency plea against KGOC Terminals Private Limited.
It held that the company could not rely on the COVID-19 suspension on insolvency filings because it had already defaulted on its loan repayments before that period began. The later classification of the loan account as a non-performing asset (NPA) did not change that position.
The bench of Judicial Member Kishore Vemulapalli and Technical Member Umesh Kumar Shukla initiated the Corporate Insolvency Resolution Process (CIRP). It also declared a moratorium and appointed an Interim Resolution Professional (IRP).
The tribunal observed, “Therefore, merely because the account was classified as NPA…