NCLAT stays insolvency strategy of RP Infosystems

The National Company Law Appellate Tribunal (NCLAT) has put aside an order of insolvency towards Kolkata-based RP Infosystems because the plea filed by the monetary creditor, State Bank of India (SBI), was past the limitation interval of three years.
In its judgment, the NCLAT mentioned that for the reason that insolvency petition moved by SBI in 2019, seven years after RP Infosystems’ accounts have been declared non-performing property in 2013. In 2020, the Kolkata bench of the National Company Law Tribunal (NCLT) had admitted the insolvency petition towards the corporate based mostly on the applying moved by SBI.
In its judgment, delivered final Wednesday and made obtainable later, the NCLAT put aside the NCLT’s order and held that the agency was “allowed to function independently through its Board of Directors with immediate effect”.

The order by the NCLAT follows whilst two of RP Infosystems administrators, Shibaji Panja and Kaustav Ray, are accused of economic fraud. Panja and Ray had in 2018 been arrested by the CBI for dishonest and defrauding a consortium of 10 banks led by Canara Bank for a complete of Rs 515 crore. The consortium contains SBI, its then subsidiaries State Bank of Bikaner & Jaipur and State Bank of Patiala, Union Bank of India, Punjab National Bank, Allahabad Bank, Oriental Bank of Commerce, and Central Bank of India.