The Mumbai Bench of NCLT has recently asked four directors of Gammon India Ltd. to not leave the country without obtaining its permission..This order was passed by NCLT while a Section 7 filing made by Union Bank of India is currently pending before the NCLT. Previously, two applications were filed by operational creditors against Gammon but both were dismissed..While Gammon was under the CDR Scheme, it ran into trouble after RBI put an end to all restructuring mechanism (outside IBC) in February 2018. The RBI further set tight deadlines for firms slipping into default. It said cases involving more than Rs. 2,000 crore have to be settled in 180 days, failing which they have to be taken to bankruptcy courts..Gammon has offered settlement proposal to the Union Bank of India which is currently under consideration. During the pendency of this matter, however, the NCLT passed an order retraining four persons from travelling abroad in view of the pending criminal proceedings against the Directors..In its January 28 order, the NCLT, noted a previous DRT order, which directed all directors to inform the DRT in case they were to travel abroad. It, accordingly, modified its previous order to reflect the same,.“Since on similar circumstances an authority has already given those directions, therefore, on the same lines it is hereby directed that if the directors as listed above intend to travel out of country the same is to be informed to NCLT.”.The NCLT further added that all the directors cannot leave the country at the same time time. The NCLT also ordered that, since the proposal for settlement is in progress, the director in-charge of Finances would remain present to monitor the progress of settlement, and that no adjournment be sought on the ground of non-availability of the said director..(Read the order)
The Mumbai Bench of NCLT has recently asked four directors of Gammon India Ltd. to not leave the country without obtaining its permission..This order was passed by NCLT while a Section 7 filing made by Union Bank of India is currently pending before the NCLT. Previously, two applications were filed by operational creditors against Gammon but both were dismissed..While Gammon was under the CDR Scheme, it ran into trouble after RBI put an end to all restructuring mechanism (outside IBC) in February 2018. The RBI further set tight deadlines for firms slipping into default. It said cases involving more than Rs. 2,000 crore have to be settled in 180 days, failing which they have to be taken to bankruptcy courts..Gammon has offered settlement proposal to the Union Bank of India which is currently under consideration. During the pendency of this matter, however, the NCLT passed an order retraining four persons from travelling abroad in view of the pending criminal proceedings against the Directors..In its January 28 order, the NCLT, noted a previous DRT order, which directed all directors to inform the DRT in case they were to travel abroad. It, accordingly, modified its previous order to reflect the same,.“Since on similar circumstances an authority has already given those directions, therefore, on the same lines it is hereby directed that if the directors as listed above intend to travel out of country the same is to be informed to NCLT.”.The NCLT further added that all the directors cannot leave the country at the same time time. The NCLT also ordered that, since the proposal for settlement is in progress, the director in-charge of Finances would remain present to monitor the progress of settlement, and that no adjournment be sought on the ground of non-availability of the said director..(Read the order)
