The National Company Law Appellate Tribunal (NCLAT), Chennai has rejected a plea by R.V. Tyagarajan, erstwhile CMD of Thiru Arooran Sugars Ltd. against the order of liquidation.
In April, the National Company Law Tribunal (NCLT), Chennai had ordered liquidation after lenders did not find any viable plan for revival of the company.
In 2019, NCLT had ordered insolvency proceedings against the firm in a case filed by State Bank of India for alleged default of ₹149.36 crore. An SBI-led consortium, that included Punjab National Bank, IDBI Bank, UCO Bank and Union Bank of India, had granted credit facility to the tune of ₹159.94 crore to the company in 2016.
NCLAT cited a Supreme Court verdict that commercial wisdom of the committee of creditors is not to be interfered with except in exceptional circumstances.
In the case of Thiru Arooran Sugars, the proposal by resolution applicant (KALS Distilleries Pvt. Ltd.) was rejected by lenders having 76.02% voting share and ruled that the liquidation order passed by NCLT is free from legal infirmities.
