The National Company Law Tribunal has initiated insolvency proceedings against Hero Electric following a plea filed by the company’s operational creditor Metro Tyres, which has claimed a default of Rs 1.85 crore.
And, in keeping with the provisions of the Insolvency and Bankruptcy Code, the tribunal has suspended the Hero Electric board and in its place appointed Bhoopesh Gupta as interim resolution professional to oversee the company.
The NCLT bench rejected Hero Electric’s contentions that there was a pre-existing dispute with the operational creditor and said that it was “not just a moonshine or feeble legal argument.”
The objections raised by Hero Electric are not found “tenable in law” and have been duly negated by Metro…
