In Bombay Rayon Fashion Limited (BRFL) insolvency case, the National Company Law Appellate Tribunal (NCLAT) has stayed the formation of Committee of Creditors (CoC) until further order.
It is a temporary relief to erstwhile promoters of BRFL.
The appellate tribunal has clarified that the Corporate Insolvency Resolution Process (CIRP) proceedings shall be continued and the resolution professional will have to keep the company as going concern under the Insolvency & Bankruptcy Code (IBC).
Few days back, the NCLAT had allowed a petition filed by an operational creditor of BRFL and had appointed Santanu T Ray of AAA Insolvency Professionals as its resolution professional.
Prashant Agrawal, a member of the company’s suspended board, had decided to appeal the ruling at the appellate tribunal.
As per reports, during the course of the hearing at the appellate tribunal, the counsel for Vikash Parasprampuria of Chiranjilal Yarn Traders, whose petition was originally admitted by the NCLAT, informed that they are willing to settle the matter if the company pays its dues along with the legal cost.
Meanwhile, advocates appearing for Prashant Agrawal have informed the tribunal that they will seek the instruction from the petitioner in this regard.
Also Read: Bankruptcy court admits Bombay Rayon Fashion for insolvency resolution
