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NCLAT Issues Notice in GVK Energy’s Appeal Challenging NCLT Chennai Order Initiating Insolvency Process Against GVK Power

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NATIONAL COMPANY LAW APPELLATE TRIBUNAL (NCLAT) Law Insider

Tanisha Rana

Published on: November 6, 2022 at 21:56 IST

On Thursday, the National Company Law Appellate Tribunal (NCLAT) in Chennai gave notice of its decision in GVK Energy Ltd.’s appeal against the National Company Law Tribunal (NCLT) in Hyderabad’s decision to file for bankruptcy proceedings against GVK Power, a subsidiary of GVK.

An order was issued by a division bench made up of Justice M. Venugopal and Shreesha Merla, technical member, allowing the applicant, Axis Bank, to submit its response to the appeal before the November 9 hearing date.

The financial creditor, Axis Bank, submitted a request under Section 7 of the Insolvency and Bankruptcy Code (IBC) to begin the Corporate Insolvency Resolution Process (CIRP) against GVK Power for a payment default of more than 400 crores of rupees—more specifically, Rs. 442,20,14,321—in total.

The NCLT had said that while admitting the plea, Axis Bank’s application had allowed it to demonstrate a default in the repayment of a debt of more than Rs. 1 crore.

GVK Energy filed an appeal before NCLAT after being aggrieved by the order.

For GVK Energy, Senior Advocate PH Arvindh Pandian and Advocate Anant Merathia appeared.

Axis Bank was represented by Senior Advocate Vivek Reddy and Advocates Aparna Ravi, Neha Pandey, and Aakash Sherwal.