In the matter of Simoco Telecommunications (South Asia) Limited C.P (Ib) No.834-KB-2018
Case brief
What is this about?
An insolvency application was filed by an operational creditor for non-payment of USD dues. The corporate debtor admitted liability but claimed inability to pay in foreign currency due to lack of RBI approval. The Tribunal held that the lack of RBI permission constituted force majeure, dismissing the application for CIRP while directing the debtor to deposit funds in the registry.
What did the court decide?
CIRP initiated; relief: Liberty to creditor to claim deposited funds; FDR to be maintained in registry.
IN THE NATIONAL COMPANY LAW TRIBUNAL ,
KOLKATA BENCH
KOLKATA
C.P (IB) No.834/KB/2018
In the matter of
An application under 9 of the Insolvency and Bankruptcy Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,2016.
And
In the matter of :
HYTERA COMMUNICATIONS CORPORATION LIMITED, a company incorporated under the appropriate laws of China, having its registered office at Hytera Tower, Shenzhen High-Tech Industrial Park North, Beihuan Road, Nanshan District- Sehenzhen, China and also at C/o Sandersons & Morgans, Solicitors and Advocates , Royal Insurance Building 5, Netaji Subhas Road, Kolkata- 700001, West Bengal.
… Operational Creditor
Versus
Issues for consideration
3 issues framed by the court
Whether the corporate debtor committed default under the settlement agreement preventing initiation of Corporate Insolvency Resolution Process (CIRP) due to inability to make foreign currency outflow.
Whether lack of Reserve Bank of India (RBI) permission for delayed foreign remittance constitutes a force majeure event excusing default.
Whether the adjudicating authority should initiate CIRP or grant liberty to the operational creditor to claim via fixed deposit while awaiting RBI approval.
Parties & counsel
- applicant
HYTERA COMMUNICATIONS CORPORATION LIMITED
Coram
Rohit Kapoor
Harish Chander Suri
Case details
As recorded by the court registry
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