NCLAT allows insolvency proceedings against RCom

The National Company Law Appellate Tribunal (NCLAT) on Tuesday allowed insolvency proceedings against Reliance Communication (RCom) after the Anil Ambani-led firm withdrew a challenge to such a move.

RCom will be admitted back to insolvency proceedings after the NCLAT allowed the debt-laden firm to withdraw its petition challenging a decision of the Mumbai-bench of National Company Law Tribunal (NCLT) to initiate such proceedings.

RCom had moved the application to withdraw its challenge to the insolvency order after its board felt insolvency was the best course after failed attempts to revive the firm.

An NCLAT bench headed by Chairman Justice S J Mukhopadhaya ruled that moratorium on liabilities would start.