The NCLT had ordered commencement of corporate insolvency resolution process against Chennai-headquartered VA Tech Wabag. (www.wabag.com)
Pure-play water technology major VA Tech Wabag, which has a significant operations across the globe, has moved the National Company Law Appellate Tribunal (NCLAT) against the Chennai NCLT order that slapped corporate insolvency resolution process on the company.
The NCLT had ordered commencement of corporate insolvency resolution process against Chennai-headquartered VA Tech Wabag, accepting the insolvency process initiated by Consolidated Construction Consortium (CCCL), a city-based player in the construction and contracts of civil sector projects.
The parties had a contractual dispute in terms of payment amounting to Rs 1.5 crore; CCCL had sought resolution of payment default. In a statement issued in Chennai on Tuesday, Wabag said that the company was completely solvent and it has filed an appeal against the order before the NCLAT.
Giving details about the dispute, the statement said CCCL had worked as one of the sub-contractors for the company’s 50 MGD WTP Dwaraka project.
CCCL had filed an application with the NCLT against the company over of an alleged default in payment of dues to CCCL involving a principal amount of Rs 1.5 crore.
Wabag contended that CCCL had not fully performed their contractual obligations as per the contract with the company and hence Wabag disputed the claim. After hearing both the parties, the NCLT at its hearing held on October 6 passed an order for initiation of corporate insolvency resolution process against Wabag under the provisions of the Insolvency and Bankruptcy Code (IBC), 2016.
The NCLT had also appointed Pathukasahasram Reghunathan Raman as interim resolution professional (IRP) to carry out the insolvency proceedings within the stipulated time of 180 days.
