Sunday, March 26, 2023

NCLAT quashes Incab Jamshedpur’s liquidation


Jamshedpur, June 4:  In a news bringing respite to employees associated with Incab Industries Limited as National Company Law Appellate Tribunal (NCLAT) Delhi  on Friday set quashed the liquidation order of Incab Industries which was earlier passed by the NCLT Kolkata bench order. 

This ended the apprehension amongst its employees about the company to be liquidated which has been closed since April 2000. All parties have been asked to appear before NCLT Calcutta bench on June 9.

The NCLAT Kolkata bench had appointed Shashi Agrawal as resolution professional and the resolution professional had on the basis of committee of creditors had informed the court that Incab Industries cannot be revived which made the Kolkata bench of NCLT to order for liquidation of the company in April 2020. 

In all 277 retired workers of the company from Jamshedpur led by Bhagwati Prasad Singh had appealed to the NCLAT  Delhi along with permanent employees led by Ram Vinod Singh challenging the liquidation order in May 2020. After a lengthy hearing the NCLAT  had reserved its hearing on May 8, 2021 and after hearing it on Friday gave order annulling the liquidation order. The NCLAT double also referred the matter to the Insolvency and Bankruptcy Board of India (IBBI). 

Advocate Akhilesh Srivastava said that the liquidation order was cancelled by the Appellate court of NCLAT and said that in the committee of creditors Kamala Mills and Pegasus should not have been included and hence the decision taken by the committee was cancelled by the Appelate court even Shashi Agarwal, the liquidator of the ailing Incab Industries appointed by the Calcutta-bench of National Company Law Tribunal (NCLT) also did not function as per rules and hence appellate court not only cancelled the liquidation order but also cancelled work done by the liquidator. 

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