The National Company Law Tribunal (NCLT), Chennai, has allowed two pleas filed by Tamil Nadu Generation and Distribution Corporation (Tangedco) Ltd. seeking to file additional documents in an insolvency case filed against it by South India Corporation Pvt. Ltd., an operational creditor.
In its pleas, Tangedco said it seeks to file additional documents as per order of the Madras High Court of November 8, 2011. The court had ruled that it is certainly within the domain of NCLT to adjudicate upon any dispute raised by a debtor in any insolvency proceedings brought by a creditor.
It had allowed Tangedco to withdraw its petition with liberty to raise permissible disputes in accordance with law before the NCLT. However, Tangedco cannot question the authority of NCLT to receive the petition, the High Court had ruled.
South India Corporation Pvt. Ltd. opposed Tangedco’s request to file additional documents and alleged that the same are dilatory tactics and to derail the proceedings. The NCLT said there have been serious allegations levelled against the operational creditor and Tangedco has raised a serious dispute in relation to the payment of money.
It allowed for filing of additional documents to bring on record the various disputes alleged by the Tangedco.
The disputed amount is about ₹1,683.58 crore as per the legal filings.
