Birla Tyres May Move Nclat, Auto News, ET Auto
Kolkata: Birla Tyres Ltd of B K Birla group is likely to appeal to NCLAT next week against the Kolkata bench of the National Company Law Tribunal (NCLT) order. NCLT had ordered the initiation of proceedings against Birla Tyres, admitting a petition of SRF Limited, an operational creditor of the tyre maker. “Birla Tyres will move NCLAT early next week,” sources said.
The application, filed by SRF Limited under section 9 of the Insolvency and Bankruptcy Code for initiating Corporate Insolvency Resolution Process (CIRP) against Birla Tyres Limited, was admitted at the NCLT Kolkata on May 5. SRF had outstanding dues of over Rs 15 crore from Birla Tyres as the company supplied nylon tyre cords. The company filed the insolvency petition against Birla Tyres for its default of making the payment.
In its order, the tribunal said Seikh Abdul Salam is appointed as interim resolution professional of the company to carry out the functions as per the IBC and the management of the company will vest in the IRP during the CIRP period.