Wadias have invoked the IBC to ensure the beleaguered airline survives and can likely be brought back to life after the debt is restructured, lawyers tell Moneycontrol.
Established in 2005, the Mumbai-based airline filed for insolvency at the Principal Bench of New Delhi as the company’s registered office is based in the national capital and hence the jurisdiction for insolvency proceedings falls in Delhi.
The Supreme Court s decision to allow borrowers a chance to be heard before their accounts are flagged as fraudulent by lenders is expected to result in several cases being reopened where the borrower is aggrieved because of such classification, bankers said.
Still, the reopening of cases would not be automatic.
A borrower who is aggrieved by the fraud classification will have to approach the bank and consequently, the bank will take the necessary steps so that the apex court s order is followed in letter and spirit, they said.
According to Ashish Pyasi, partner , Dhir and Dhir Associates, under the Companies Act 2013, a former promoter can withdraw his resignation even if the resolution professional is in charge of the insolvent company if the same was not accepted by him