NCLAT Stays Insolvency Proceedings Against Deccan Charters Till April 26
NCLAT stays insolvency proceedings against Deccan Charters till Apr. 26, 2024, following a plea of financial creditor Krone Finstock claiming a default of around Rs 10 crore.
The National Company Law Appellate Tribunal has stayed insolvency proceedings against Captain GR Gopinath’s Deccan Charters till Apr. 26, 2024, its next date of hearing. A three-member bench of the appellate tribunal also directed the interim resolution professional not to proceed any further till the next date of hearing.
Earlier, the Bengaluru bench of the National Company Law Tribunal had directed initiation of Corporate Insolvency Resolution Process, admitting a plea of financial creditor Krone Finstock claiming a default of around Rs 10 crore.
The Chennai bench of NCLAT on a petition filed by Sanjay Saihgal, a director of the suspended board of Deccan Charters, on Wednesday directed Krone Finstock to file a reply within four days.
The NCLT had also appointed an IRP for the company, which was challenged before NCLAT.
During the hearing, NCLAT was informed that the IRP made a public announcement on Apr. 8, 2024 regarding the CIRP and the last date for bids was Apr. 19, 2024.
GR Gopinath, along with the other directors, had approached Krone Finstock for a Rs 5 crore loan. A loan agreement was signed between the creditor and the company.
Deccan Charters had repaid some amount which was adjusted into the accrued interest.
However, it subsequently failed to pay the rest of the amount as per the agreement, following which financial creditor Krone Finstock moved NCLT, which on Apr 5, 2024 directed initiation of CIRP.
Deccan Charters provides services such as aircraft maintenance, aviation training and charter services of helicopter and fixed-wing aircraft.
