IFCI FILES FOR INSOLVENCY SUIT AGAINST ANIL AMBANI’S RELIANCE NAVAL & ENGG

IFCI FILES FOR INSOLVENCY SUIT AGAINST ANIL AMBANI’S RELIANCE NAVAL & ENGG
Anil Ambani-led Reliance Naval and Engineering is facing bankruptcy proceedings under the Insolvency and Bankruptcy Code at the National Company Law Tribunal (NCLT). The Ahmedabad bench of the NCLT, which is hearing the insolvency case filed by infrastructure lender IFCI Ltd, has posted the case for hearing on December 8.
NCLT Member Judicial Bikki Raveendra Babu and Member Judicial Manorama Kumari presided at the November 27 hearing of the case, which has been filed under Section 7 of the Insolvency and Bankruptcy Code section of the Companies Act.
Reliance Naval, yet another defence shipyard that is floundering amidst high debt, has been asked to file its objections, if any, within one week.
Refuting the charge, Reliance Naval said in a statement that there are no merits in the application filed by IFCI before NCLT “as it is an unsecured creditor”.
In a response to the stock exchanges, Nikhil Jain, Chief Financial Officer said, “The action of IFCI is unwarranted and premature. The 25 secured lenders of the company have also requested IFCI that the matter be resolved outside the NCLT."