Jamshedpur 5th June 2021: The National Company Law Appellate Tribunal (NCLAT) court has given an important decision in the case of Cable Company which has been closed for 21 years.
The NCLAT on Friday set quashed the liquidation order of Incab Industries which was earlier passed by the NCLT Kolkata bench order.
The NCLAT Court has set aside the order issued by the NCLT Court, Kolkata in February 2020 to auction the Cable Company.
Simultaneously, the company’s resolution professional, Shashi Aggarwal (RP), was retired and ordered to appoint a new professional in 7 days and investigate it with IBBI.
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.
The case was filed by the workers in the NCLAT court. Advocates Akhilesh Srivastava, Sanjeev Mohanty, Chandralekha participated in the hearing.
After a lengthy hearing, the NCLAT had reserved its hearing on May 8, 2021, and after hearing it on Friday, gave an 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 therefore, the decision taken by the committee was cancelled by the Appellate 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.