NCLAT stays insolvency process against Deccan Charters

The National Company Law Appellate Tribunal (NCLAT) at Chennai on Wednesday stayed the insolvency process initiated against the Deccan Charters Pvt Ltd till April 26, 2024 [Sanjay Saihgal, Deccan Charters v. Krone Finstock]..A coram of judicial members M Venugopal and Sharad Kumar Sharma and technical member Jatindranath Swain called for response from Krone Finstock, the creditor who filed the application seeking insolvency.“The Interim Resolution Professional (IRP) is not to proceed any further till the next date of hearing which is on April 26, 2024”, the order said..On April 5, the Bengaluru bench of National Company Law Tribunal (NCLT) had admitted the aircraft and helicopter maintenance and management company into the Corporate Insolvency Resolution Process (CIRP) over a default of ₹9,82,24,077. It had observed that there was a debt and default in the case and hence admitted the company under insolvency..This order was challenged before the NCLAT by the now suspended director of Deccan Charters who claimed that the NCLT order ought to be set aside as there was no debt payable or default in repayment. The appeal highlighted that Deccan is a going concern having more than 200 employees and estimated revenue of 80 crores. Apart from that, it operates and maintains 40 aircrafts and helicopters from over 12 locations in India. This entire business built by Deccan's promoters over three decades would be rendered nugatory by the NCLT order, Deccan argued..NCLAT will hear the appeal next on April 26, 2024..Senior advocate PH Arvindh Pandian with advocates Pawan Jhabakh, Jerin Asher Sojan and KM Ashif appeared for Deccan.Senior advocate R Murari appeared for Krone.Advocate Anshuman appeared for the IRP.[Read order]