The National Company Law Appellate Tribunal (NCLAT) on Thursday upheld the orders of the NCLT directing to initiate insolvency proceedings against Meenakshi Energy Ltd.
A three-member bench has dismissed the plea filed by its director and its shareholder India Power Corporation Ltd observing that the company had committed default.
Moreover, the NCLAT also rejected the contentions that its financial creditor SBI cannot move the NCLT after invoking the pledged shares of the company and virtually owning 95.2 per cent shares of Meenakshi Energy.
The petitioners had maintained that SBI after being a majority shareholder of the company cannot maintain this application as a financial creditor.
