The National Company Law Appellate Tribunal (NCLAT) has upheld the decision to dismiss Kesoram Industries’ appeal against the National Company Law Tribunal’s (NCLT) ruling in Kolkata. The NCLT had rejected Kesoram’s claim of being a financial creditor of Birla Tyres Ltd.
NCLAT ruled that Kesoram failed to substantiate the nature of the transaction as a deposit or loan, stating, “the adjudicating authority (NCLT, Kolkata) didn’t commit any error in rejecting the application filed by the appellant.”
Kesoram Industries, a part of the BK Birla Group, had sought NCLT, Kolkata’s intervention, urging the tribunal to instruct the resolution professional (RP) to recognize it as a financial creditor of Birla Tyres. The RP had initially dismissed Kesoram Industries’ claim amounting to ₹518.3 crore, contending it was provided to Birla Tyres as an inter-company loan.
