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The National Company Law Appellate Tribunal (NCLAT) has put a hold on the ongoing liquidation of Bharati Defence and Infrastructure Ltd. The liquidator has been directed by the NCLAT to not take any steps regarding the selling or transferring or isolating movable or immovable assets of the company.
Earlier in January, the Edelweiss Asset Reconstruction Company resolution plan, which was accepted by the committee of creditors, was rejected by the Mumbai bench of the National Company Law Tribunal (NCLT) ordering the liquidation proceeding.
In June 2017, Edelweiss ARC, who was the biggest financial creditor, has initiated the insolvency process against Bharati Defence. Edelweiss ARC also came out as the only successful bidder, as the four other offers were rejected due to non-compliance.
However, NCLT rejected Edelweiss ARC proposal as well citing that the company failed to envisage infusion of fresh funds, differentiate employees and workmen rights and ignored to allocate any amount towards statutory dues. The NCLT also said that the committee of creditors and the resolution professional failed to ensure appropriate checks and balances.
