NCLT allows Tangedco to file additional documents in the event of insolvency

Tangedco is embroiled in a dispute with South India Corpn. ltd. on amount of ₹1,683.58 crore

Tangedco is embroiled in a dispute with South India Corpn. ltd. on amount of ₹1,683.58 crore

The National Company Law Tribunal (NCLT), Chennai, has allowed two pleas filed by Tamil Nadu Generation and Distribution Corporation (Tangedco) Ltd. seeking to file additional documents in an insolvency case filed against it by South India Corporation Pvt. Ltd., an operational creditor.

In its pleadings, Tangedco said it was seeking to file additional documents in accordance with the order of the Madras High Court on November 8, 2011. The court had ruled that it was certainly within the purview of NCLT to adjudicate any disputes. raised by a debtor in any insolvency proceeding brought by a creditor.

It had allowed Tangedco to withdraw its petition with freedom to raise admissible disputes under the law before the NCLT. However, Tangedco cannot challenge NCLT’s authority to entertain the petition, the High Court had ruled.

South India Corporation Pvt. ltd. objected to Tangedco’s request to file additional documents and alleged that it was delaying tactics and derailing the proceedings. The NCLT said serious allegations were made against the operating creditor and that Tangedco raised a serious dispute over payment of the money.

It allowed the filing of additional documents to report on the various disputes alleged by Tangedco.

The disputed amount is around ₹1,683.58 crore according to the legal documents.