PSU Bridge and Roof, which is 104 years old, avoids bankruptcy after the NCLAT overturns the NCLT order.

PSU Bridge and Roof, which is 104 years old, avoids bankruptcy after the NCLAT overturns the NCLT order.

In the case of Ravi Kumar v. Chevrox Constructions Ltd., the National Company Law Appellate Tribunal (NCLAT) on February 16 overturned a judgment by the National Company Law Tribunal (NCLT) in Kolkata that had admitted a 104-year-old government-owned business into bankruptcy.

The decision was made in response to an appeal submitted by Ravi Kumar, a member of the management team of Bridge and Roof Company (India) Limited, a public sector organization that is overseen administratively by the Ministry of Heavy Industries and is under the Union Ministry of Petroleum and Natural Gas.

According to Kumar, the government business has paid back all ₹4 crores that were owed to the creditor, Chevrox Constructions. As a result, the order that started the insolvency procedure against Bridge and Roof should be revoked.

The payment was also acknowledged by Chevrox Constructions.

Given this, the NCLT ruling dated February 9 was overturned and set aside by the panel consisting of technical member Barun Mitra and chairman Justice Ashok Bhushan.

The case commenced when Chevrox Constructions, an Ahmedabad-based private construction business, contacted the NCLT’s Kolkata bench, requesting to file for corporate insolvency resolution (CIRP) against Bridge and Roof due to an alleged payment default of ₹4,47,90,393.

On February 9, the NCLT Kolkata granted the petition for bankruptcy, noting that Bridge and Roof were in arrears on the obligation and that there was a clear debt.

Additionally, it designated Subodh Kumar Agrawal as the insolvency process’s interim resolution specialist.

In response to an appeal, the NCLAT reversed the NCLT order and mandated that Bridge and Roof reimburse the NCLT-appointed Interim Resolution Professional (IRP) for half of their expenses within two weeks of the order’s issuance.

For Bridge and Roof, senior advocate Abhijit Sinha appeared alongside advocates Nakul Mohta, Gursharan H. Virk, and Riya Dhingra.

Chevrox Constructions was represented by lawyers Malak Bhatt, Munjaal Bhatt, Neeha Nagpal, and Mandeep Singh.

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