The Supreme Court on January 12 dismissed a plea seeking to initiate insolvency proceedings against renewable power firm Inox Wind Limited over non-payment of dues.The court asked GRI Towers India Private Limited to explore options such as arbitration to recover its alleged dues from Inox and dismissed the plea.GRI was engaged by Inox between 2013 and 2017 for providing equipment and manpower. The company alleged it had not been paid more than Rs 90 lakh for its work. Along with an annual interest of 12 percent, the amount crossed Rs 1 crore.GRI moved the Supreme Court after National Company Law Appellate Tribunal (NCLAT) in October dismissed its plea.Dismissing the plea, NCLAT said, "Insolvency proceedings are not for recovery of contractual dues, it is apparent from the facts of the present case that the company has initiated proceeding for recovery of its contractual dues."GRI had initially approached the National Company Law Tribunal (NCLT) at Chandigarh to initiate the proceedings. The tribunal refused to entertain the plea, since the principle amount due was less the Rs 1 crore.
According to the Insolvency and Bankruptcy Code (IBC), a plea to insolvency can be filed only if the amount outstanding is Rs 1 crore or more.At 1.18 pm, the stock was trading at Rs 439.65 on the National Stock Exchange, down 2.74 percent from the previous close.
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Taking a strong stance against the state government for its failure to comply with orders, the Karnataka High Court has directed the state government to deposit a cost of Rs 5 lakh in a contempt proceeding. The complaint was pertaining to non-payment of salary increments to a retired employee with the Department of Public Libraries.The contempt petition, filed by V A Nagamani, had approached the HC in 2014, seeking parity of pay scale with that of the Library Assistants working in the Department of Public Libraries. On October 14, 2020, the single bench had directed the state government to extend the benefits to her as per the government order dated October 12, 2006 within a period of two months. The petitioner filed a contempt petition after the authorities failed to comply with the order. A division bench comprising Chief Justice Prasanna B Varale and Justice Krishna S Dixit had issued notice on December 1, 2023. During the hearing on Tuesday, the state government filed a memo seeking further time of six weeks on the grounds that a proposal has been sent to the Finance department.
The bench observed that even three years after the court direction, the state government could not comply as per its own order issued in 2006. “As a right, people come to the court. Orders are made, but they are not obeyed. A simple direction was issued to extend the benefit to this petitioner. It took three years. The party first has to approach this court. Even after the favourable order, again the petitioner has to file contempt petition,” Justice Krishna Dixit orally said. Justice Dixit further said, “People are unhappy with our courts. Go to any park and listen to what people talk about our courts. This litigant has fought for 10 years. We know that the government doesn’t understand soft language.”The bench said that it hoped against the hope that the order would be complied with.
“This approach of the state government certainly prompts this court to grant only 3 weeks’ time subject to the state depositing cost of Rs 5 lakh in this court within two weeks from today. As there are as many as six respondents - accused and every accused is occupying a responsible position in the state government, the government may recover the amount of cost from the erring officers by fixing the responsibilities on such erring officers. A copy of the order be forwarded to the Chief Secretary,” the bench said.
TAGS: Supreme Court Inox Wind Limited GRI Towers India Private Limited Insolvency Proceedings
