On January 12, the Supreme Court rejected a request to file for bankruptcy against the renewable energy company Inox Wind Limited due to unpaid debts.
The court rejected the plea and ordered GRI Towers India Private Limited to investigate alternatives like arbitration in order to recoup its purported debt from Inox.
Between 2013 and 2017, Inox hired GRI to supply labor and equipment. According to the company, it was not compensated for its work with more than Rs 90 lakh. The amount exceeded Rs 1 crore plus a 12 percent annual interest rate.
Following the National Company Law Appellate Tribunal’s (NCLAT) October dismissal of GRI’s plea, the Supreme Court was consulted.
rejecting the plea, NCLAT stated, “Insolvency proceedings are not for recovery of contractual dues, it is apparent from the facts of the present case that the company has initiated proceeding for recovery of its contractual dues.”
In order to start the process, GRI first went to the National Company Law Tribunal (NCLT) in Chandigarh. Since the principal amount owed was less than Rs 1 crore, the tribunal declined to consider the plea.
A plea to insolvency can only be filed if the outstanding amount is Rs 1 crore or more, as per the Insolvency and Bankruptcy Code (IBC).
The stock was down 2.74 percent from the previous close as of 1:18 p.m. on the National Stock Exchange, trading at Rs 439.65.