NCLT to send Samay Electronics case to 3rd member after split verdict

Appellate tribunal NCLAT has directed that a plea by JM Financial Asset Reconstruction Company to initiate insolvency proceedings against Samay Electronics be placed before a third member of the NCLT Ahmedabad bench after two other members of the same bench gave a split verdict in the matter.

The two-member Ahmedabad bench of the National Company Law Tribunal (NCLT) had delivered the split verdict on February 26, 2020.

The technical member directed admitting the application filed under Section 7 of the Insolvency and Bankruptcy Code to initiate the proceedings, while the judicial member gave a dissenting view, rejecting the plea.

Following this, JM Financial Asset Reconstruction Company, which is acting as a trustee of JMFARC-SBI, approached the National Company Law Appellate Tribunal (NCLAT).