The National Company Law Tribunal (NCLT), New Delhi Bench, on Friday, admitted an application for initiating a corporate insolvency resolution process (CIRP) against McLeod Russel India, the largest bulk tea producer in the country.
In a stock exchange filing, the company said that an application had been filed by Techno Electric & Engineering Company against it before the NCLT under Section 7 of the Insolvency and Bankruptcy Code (IBC), and the matter was admitted in an order dated August 6, 2021. By the order, Kanchan Dutta had been appointed as the interim resolution professional (IRP) under the provisions of the IBC, the filing mentioned.
Once the world’s largest tea producer, McLeod Russel, part of the Brij Mohan Khaitan group company, is now India’s largest with about 31 estates in Assam and two in West Bengal. Across India, Africa and Vietnam, it produces around 73 million kg of tea. The trigger for the application by Techno was a loan agreement with McLeod that dates back to 2018.
It was to provide an inter-corporate deposit (ICD) of Rs 100 crore to McLeod subject to the condition that the same would be utilised for the purpose of repayment of all loans relating to four estates due to banks and financial institutions to ensure that all encumbrances created on the estates were released. McLeod had also mortgaged a property. However, the title deeds relating to the estates were not handed over to Techno and the loan amount was not repaid by the due date of March 31, 2019.
The tribunal in its order said that it was satisfied with the present application, which was complete in all respects and the applicant is entitled to claim outstanding financial debts from the respondent and that there has been a default in payment of the financial debt.
source ; www.latestlaws.com
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