The National Company Law Tribunal (NCLT), Chennai Bench, has ordered initiation of insolvency proceedings against L&T Halol – Shamlaji Tollway Ltd (L&T Halol) on a petition filed by Oriental Bank of Commerce (OBC), which alleged that the company had defaulted in repayment of ₹76.68 crore as on December 27, 2018.
L&T Halol was a special purpose vehicle of L&T Infrastructure Development Projects Ltd to augment the 173-km long, two-lane road to a four-lane divided road from Halol to Shamlaji on State Highway 5 in Gujarat on a Build-Operate-Transfer (Toll) basis.
The company said that there was no default in repayment on the debt. Even if there was a default, the bank on its own cannot independently initiate proceedings against the company, said information in the order by BSV Prakash Kumar, member (Judicial), NCLT Chennai Bench.
