NCLT Approves Bankruptcy Proceedings Against Monnet Ispat And Alok Industries

The National Company Law Tribunal (NCLT) on Tuesday approved bankruptcy proceedings against Monnet Ispat and Energy and Alok Industries, making them the second and third of the big 12 defaulters identified by the Reserve Bank of India where the process has gone into the second stage.

Alok Industries has already admitted its default. However, the tribunal had to hear a petition filed by the Industrial and Commerce Bank of China (ICBC) that sought dismissal or deferment of a petition against the firm.

ICBC’s petition was dismissed by the judge, who said the tribunal has the power to impose a moratorium on any other pending suit against the defaulter. Alok Industries’ overall outstanding debt stands at about Rs 20,000 crore. Of this, it owes Rs 8,000 crore to State Bank of India (SBI).

Monnet Ispat has defaulted on loans worth Rs 1,539 crore owed to SBI. According to NCLT filings, the firm has a total debt of more than Rs 10,000 crore.