The National Company Law Tribunal (NCLT) has ordered initiation of insolvency proceedings in the Birla Tires case filed by chemical firm SRF. SRF is an operational creditor of the firm of BK Birla Group.
Subsequently, the NCLT Bench appointed Sheikh Abdul Salam as the Interim Resolution Professional (IRP) to run the operations of the company, as the board was suspended. The NCLT has also announced an adjournment as per the procedures of the Insolvency and Bankruptcy Board.
SRF said that Birla Tires defaulted in payment of 15.84 crore for the supply of tire cord fabric by July 8, 2021.
Regarding the matter, the tribunal said it was “satisfied on the basis of the documents”, which included the arguments of the parties as “defaulted” and observed that the unpaid operating debt had not been paid and that Also accepted by Birla Tyres. , Corporate Debtors.
A Bench of NCLT in its order said, “The application filed by SRF Limited, the operational creditor, under section 9 of the Insolvency and Bankruptcy Rules, 2016 for initiating CIRP against Birla Tires Limited, the corporate debtor, is allowed ” Passed on May 5, 2022. Further, the NCLT bench also rapped the BK Birla Group firm for making a “very casual attempt” to seek an adjournment in the matter.
In this case, NCLT had issued notice to Biral Tires on 20 October 2021 on the petition of SRF. On December 22, 2021, Birla Tires sought some time to file its reply and sought an adjournment. Again on February 28, 2022, the firm sought some more time, for which the NCLT gave them two weeks.
On April 5, 2022, in the next hearing, Birla Tires again sought another extension on the pretext of some disruption in its factory premises, which was rejected by the NCLT and the order was reserved.