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The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings initiated against Vikram Solar, temporarily halting the Corporate Insolvency Resolution Process (CIRP) ordered by the National Company Law Tribunal (NCLT), Kolkata Bench. The stay follows Vikram Solar’s appeal against an NCLT order admitting an insolvency petition filed by operational creditor Isitva Steels under Section 9 of the Insolvency and Bankruptcy Code, 2016. The NCLT had earlier admitted the plea and appointed an interim resolution professional, resulting in the suspension of the company’s board. With the appellate tribunal granting interim relief, no further action can be taken under the insolvency process until the matter is heard again. The next date of hearing has not yet been disclosed.
The National Company Law Appellate Tribunal (NCLAT) has granted interim relief to Vikram Solar by staying insolvency proceedings initiated against the renewable energy company, pending the next hearing in the matter.
The development follows an order issued by the Kolkata Bench of the National Company Law Tribunal (NCLT) on June 19, which admitted an insolvency petition filed by operational creditor Isitva Steels under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016. Following the admission of the petition, the NCLT directed the commencement of the Corporate Insolvency Resolution Process (CIRP) against Vikram Solar.
As part of the insolvency process, the tribunal had appointed an interim resolution professional (IRP) and suspended the powers of the company’s board of directors in accordance with provisions of the Insolvency and Bankruptcy Code.
Vikram Solar subsequently challenged the NCLT order before the National Company Law Appellate Tribunal. In a regulatory filing, the company stated that the appellate tribunal has stayed the operation of the NCLT order until the next date of listing.
According to the company, the NCLAT order effectively suspends the insolvency resolution process initiated against Vikram Solar and prevents any further action from being undertaken by the interim resolution professional during the period of the stay.
The company stated that the appellate tribunal has stayed the operation of the order admitting the insolvency petition filed by Isitva Steels. As a result, the CIRP process remains on hold until the matter is taken up again by the appellate authority.
Vikram Solar further noted that, with the stay in place, no additional steps can be carried out under the insolvency framework by the appointed resolution professional. The company did not disclose the next date of hearing in its filing.
The dispute centres on the insolvency application filed by Isitva Steels as an operational creditor. Under Section 9 of the Insolvency and Bankruptcy Code, operational creditors may initiate insolvency proceedings against a corporate debtor in the event of a payment default, subject to the satisfaction of conditions prescribed under the law.
The NCLAT’s intervention provides temporary relief to Vikram Solar while the appellate tribunal examines the merits of the challenge against the NCLT order. The final outcome of the appeal will determine whether the insolvency proceedings are revived or set aside.
An official copy of the NCLAT order was yet to be uploaded on the tribunal’s portal at the time of the company’s disclosure.
Vikram Solar is among India's renewable energy companies engaged in the manufacturing of solar photovoltaic modules and the development of solar energy solutions. The proceedings are being closely watched by stakeholders given the company's position in the country's renewable energy sector.
Source - PTI
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