In a recent ruling, the National Company Law Tribunal (NCLT), Chennai Division Bench, admitted a Section 7 application filed by Punjab National Bank against Aban Offshore Ltd., initiating the Corporate Insolvency Resolution Process (CIRP) for a default of over Rs. 1062 crore.
The application stemmed from a debt dating back to 2017. Aban Offshore, the Corporate Debtor, contested the petition, arguing that it was a solvent company facing temporary difficulties and had submitted several One-Time Settlement (OTS) proposals.
The debtor urged the Tribunal to exercise its discretion under Section 7(5)(a) of the IBC to reject the petition, relying heavily on the Supreme Court’s decision in Vidarbha Industries Power Ltd.,…