NCLT Orders Insolvency Proceedings Against Birla Tyres

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The National Company Law Tribunal (NCLT) has ordered the initiation of insolvency proceedings against Birla Tyres Ltd. in a case filed by multi-business chemicals firm SRF Ltd., an operational creditor of the BK Birla group firm, The Hindu reported. A two-member Kolkata bench of the NCLT has also appointed Seikh Abdul Salam as Interim Resolution Professional (IRP) to run the operations of the company after suspending the board and also declared a moratorium as per the procedures of the Insolvency & Bankruptcy Board (IBC). SRF had claimed a default in payment of ₹15.84 crore, which includes a principal of ₹10.06 crore and interest of ₹5.78 crore, for the supply of tyre cord fabric as of July 8, 2021. The tribunal said it was "satisfied upon the basis of documents", including pleadings of parties as "default has occurred" and observed there is no payment of the unpaid operational debt and also there is an admission of this by Birla Tyres, the corporate debtor. Read more.