The National Company Law Appellate Tribunal (NCLAT) Mumbai has put a stay on the insolvency proceedings against India’s third largest IT services player HCL Technologies. The National Company Law Tribunal (NCLT) had on January 17, 2022 had initiated for insolvency proceedings against the company.
The NCLAT in its hearing said that the dispute was genuine between the parties but the insolvency resolutions proceedings (IRP) should not have been initiated. “The Adjudicating Authority proceeded to decide the dispute between the parties like a civil court which ought not to have been done,” said the NCLAT. The next date of the hearing for the case will be February 16, 2022.
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The case against HCL Tech was filed by Sahaj Bharti Travels on August 6, 2019 through an e-application to the NCLT. The company claimed that HCL Tech had continued to default on its payment under the minimum guarantee clause of the agreement amounting to Rs 3.54 crore.
NCLT admitted the application on January 17 2022, thus initiating the insolvency proceedings under Section 9(5) of the IBC 2016 act and also appointed an Insolvency resolution Professional (IRP) to take over the functioning of HCL Tech with immediate suspension of the company’s board.
HCL Tech counsel said that a reply was submitted on June 25, 2019 denying the claim and in the reply detailed facts indicating that minimum Guarantee claim was not payable because there was breach of conditions and penalty was also imposed on the cab operator.
