Disposing of a plea of a tyre manufacturer, the Karnataka High Court has directed the National Company Law Tribunal (NCLT) to hear afresh bankruptcy proceeding of Falcon Tyres, filed by Edelweiss Asset Reconstruction Company (ARC).
Falcon Tyres’ promoter Pawan Ruia had approached the high court seeking a fair trial, stating that principle of natural justice was denied to him by the NCLT on grounds that he was not given adequate time to respond to Edelweiss’ notice.
“We were not heard, which is against the principle of natural justice,” Kedar, counsel of Ruia, had submitted before Justice A S Bopanna.
In his plea, Ruia had sought a stay on NCLT’s liquidation of Falcon Tyres as he was not given adequate time to respond to NCLT notices on the matter.
After Falcon Tyres got the stay, Edelweiss also this year approached the Supreme Court, which directed NCLT against liquidating Falcon Tyres until the Karnataka High Court gave its verdict.
In 2015, Falcon Tyres had approached ARC, which undertook the job of identifying and bringing investors for tyre manufacturer in order to cut its incurred losses.
After two years, Edelweiss moved NCLT seeking liquidation of Falcon Tyres under the Insolvency and Bankruptcy Code for default.
NCLT, a quasi-judicial body, is law-bound to come up with a resolution within 180 days of the plea being submitted relating to companies.
Earlier today, Edelweiss withdrew its plea in the Supreme Court against Karnataka High Court order shooting down the company’s original plea seeking liquidation of the tyre manufacturer.
( Source – PTI )
