Sri Adhikari Brothers Television Network Limited (SABTNL) had sought an interim stay from the National Company Law Tribunal (NCLT) against a Show Cause Notice (SCN) issued by the Central Bank of India. However, the NCLT has rejected the application. According to the tribunal, the bank had followed High Court orders and RBI guidelines by issuing the SCN to call upon SABTNL to show cause as to why its account should not be classified as ‘wilful defaulter’ after declaring it as a “fraud”. The company had argued that this declaration should not have affected its resolution plan already approved by the tribunal, which the NCLT held did not have standing, as the SCN relates to events prior to plan’s approval. The tribunal rejected the applicant’s contentions, stating that there was no procedural deviation and no harm caused by issuing an SCN, as SABTNL was provided the opportunity to respond. Finally, the NCLT denied the request for ex-parte interim stay and rejected the application seeking relief against the SCN.
The National Company Law Tribunal (NCLT) has rejected the interim stay sought by Adhikari Brothers against the show-cause notice issued by the Central Bank of India.
by newsworm | Dec 20, 2024 | Banking, Central Bank of India, RBI | 0 comments