Appellate Tribunal dismisses IBBI plea in GTL Infra case

The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by the insolvency regulator, which had challenged a bankruptcy court decision to reject lenders’ plea to admit GTL Infrastructure for insolvency proceedings.

The Insolvency and Bankruptcy Board of India’s (IBBI) petition was seen as an attempt towards course correction after various tribunals rejected applications to initiate insolvency proceedings against defaulters citing a Supreme Court order. The apex court had struck down a bankruptcy court decision to admit Vidarbha Industries Power for insolvency proceedings, saying that its receivables were enough to pay off the debt.