NCLAT Dismisses HDIL’s Appeal; Gives Go Ahead to Initiate Insolvency Proceedings

The National Company Law Appellate Tribunal (NCLAT) has upheld the order passed by NCLT, Mumbai Bench, against the real estate giant Housing Development & Infrastructure Limited (HDIL) for initiation of insolvency proceedings under the Insolvency and Bankruptcy Code 2016 (IBC). HDIL had contended that it was not given enough opportunity to put forth its case and hence the order was in violation of natural justice. Dismissing the appeal filed by HDIL’s Promoter Rakesh Wadhwan, the principal bench observed that the corporate debtor’s claim was erroneous and it had repeatedly defaulted in making the payment despite several opportunities and ample time was provided to settle the matter.