The National Company Law Tribunal (NCLT) on Friday stayed its previous order allowing the withdrawal of insolvency plea against Sterling SEZ and Infrastructure at the behest of the Ministry of Corporate Affairs (MCA), as promoters — Nitin and Chetan Sandesara — are absconding.
The MCA said Section 12A of the Insolvency and Bankruptcy Code (IBC) was not applicable to an absconder. The Enforcement Directorate (ED) is seeking to declare the promoters as fugitive offenders under the Fugitive Economic Offenders Act in a Delhi court. Senior counsel Sanjay Shorey represented the MCA. The section states an application can be withdrawn by the NCLT if 90 per cent of the committee of creditors (CoC) approves of it.
Earlier, the Bench presided over by Bhaskara Pantula Mohan and V Nallasenapathy had allowed Srei Infrastructure Finance to withdraw the insolvency plea against the debt-ridden company, as 92 per cent of the lenders had approved the withdrawal.
