valecha engineering: NCLT admits Valecha Engineering under Injustice Redressal Procedure | Rare Techy

A bankruptcy court in Mumbai admitted the listed infrastructure company under the Corporate Insolvency Resolution Process (CIRP) and appointed Anurag Kumar Sinha as the company’s interim resolution expert.

State Bank of India (SBI) had filed an application in the Mumbai court of the National Company Law Tribunal (NCLT) after the company failed to repay its debts of over Rs 347 crore.

Valecha Engineering of Mumbai is involved in the construction of roads, bridges and tunnels, airports and irrigation dams, among other projects.

In its 34-page order dated October 21, which was made available recently, the court said: “Supply of essential goods and services to the corporate debtor, if continued, shall not be stopped or stopped or interrupted during the moratorium period. make a.”

Counsel for the lenders, Subir Kumar and Disha Shah, argued that the infrastructure company was availing and enjoying credit facilities but was unable to repay the money hence its accounts were classified as Non-Performing Assets (NPA) in June 2016. . Reserve Bank of India (RBI) prudential norms.

Against this, advocate Prateek Seksaria, who appeared on behalf of the company, said the bankruptcy code application was barred by the statute of limitations as it was filed three years after the alleged bid.

However, the bench, headed by members Kishore Vemulapalli and Manoj Kumar Dubey, allowed the submission by the SBI. It observed that the creditor had also initiated recovery proceedings against the company before the Debt Recovery Tribunal on August 8, 2018, to recover its due dues and therefore the application could not be termed as time barred. .

In FY2022, the company reported a revenue of Rs 230.81 crore and posted a net profit of Rs 2.33 crore. According to the stock market filing, the company’s promoters own 18.9% of the company, while the common stock stands at 81.91%.

Originally established in 1957 as Gopaldas Vasudev & Co, Valecha Engineering had started with small road projects for the Brihanmumbai Municipal Corporation (BMC). In 1977, he entered into irrigation projects such as dams. The company was listed on the stock exchange in December 2000.