NCLAT stays insolvency proceedings against Deccan Charters till April 26

New Delhi: The National Company Law Appellate Tribunal (NCLAT) has stayed insolvency proceedings against Captain GR Gopinath’s Deccan Charters till April 26, 2024, its next date of hearing.

Earlier, the Bengaluru bench of the National Company Law Tribunal (NCLT) had directed the initiation of a Corporate Insolvency Resolution Process (CIRP), admitting a plea of financial creditor Krone Finstock claiming a default of around Rs 10 crore.

The Chennai bench of NCLAT on a petition filed by Sanjay Saihgal, a director of the suspended board of Deccan Charters, on Wednesday directed Krone Finstock to file a reply within four days.

A three-member bench of the appellate tribunal also directed the interim resolution professional (IRP) not to proceed any further till the next date of hearing i.e. April 26, 2024.

Deccan Charters provides services such as aircraft maintenance, aviation training and charter services for helicopter and fixed-wing aircraft.

The NCLT had also appointed an IRP for the company, which was challenged before the NCLAT.

During the hearing, NCLAT was informed that the IRP made a public announcement on April 8, 2024, regarding the CIRP and the last date for bids was April 19, 2024.

GR Gopinath, along with the other directors, had approached Krone Finstock for a Rs 5 crore loan. A loan agreement was signed between the creditor and the company.

Deccan Charters had repaid some amount which was adjusted into the accrued interest.

However, it subsequently failed to pay the rest of the amount as per the agreement, following which financial creditor Krone Finstock moved NCLT, which on Apr 5, 2024, directed the initiation of CIRP.