NCLT chief to take call on insolvency petition against Era Infra

The National Company Law Tribunal (NCLT) has recommended the insolvency petition against Era Infrastructure to the president of the NCLT for it to be transferred to a larger Bench.

In an order, a two-member NCLT Bench said the president of the tribunal can take a call on the case. Amid pending winding-up petitions already filed in the Delhi High Court against the company, the NCLT's New Delhi Bench was hearing a case filed by the Union Bank seeking the commencement of the insolvency resolution process against Era Infra.

The Bench had earlier questioned Union Bank as to whether the insolvency application against Era Infra could be entertained in light of the pending high court petitions since the tribunal is required to pass an order staying all other legal proceedings before the insolvency process can commence.

Article 227 of the Constitution says that the high court of a state shall have supervisory jurisdiction over all courts and tribunals within its area of influence. However, the counsel for Union Bank had argued that the insolvency case against the company could be admitted as all creditors involved in the winding-up petitions could stake their claims over the company's assets if the case came up under IBC.

The bank had also highlighted orders from other benches of the NCLT, according to which, insolvency proceedings could be initiated in similar circumstances.