NCLT admits insolvency plea against McNally Sayaji

McNally Sayaji Engineering Ltd (MSEL), an unlisted subsidiary of the Khaitan family-run McNally Bharat Engineering, is facing corporate insolvency after financial creditor ICICI Bank sought the National Company Law Tribunal's (NCLT) intervention. ICICI Bank had granted loans to the tune of Rs 50 crore to McNally Sayaji. NCLT observed that corporate debtor MSEL committed default in making the payment of the loan amount of Rs 45.84 crore and having failed till date to make the repayment of the said loan with interest, being Rs 74.85 crore and that the application deserves to be admitted. The tribunal has also appointed a resolution professional to carry out the corporate insolvency resolution proceedings and declared a moratorium on new cases against the company under provisions of the Insolvency and Bankruptcy Code (IBC), 2016. According to MSEL, the resolution process has been going on for some time and other lenders, including the State Bank of India (SBI), had vetted the process. A rating agency had also been appointed for verification of the accounts. Other lenders include Kotak Mahindra Bank, IDBI and DBS. MSEL is a manufacturer of crushing, screening, grinding, material handling and mineral processing equipment. It serves core sector industries like coal, iron ore, steel, copper and zinc, limestone, rare earth and other mineral businesses. The company has four manufacturing units, one each in Asansol (West Bengal), Kumardhubi (Jharkhand), Vadodara, and Bengaluru. Image SourceMake in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info