The Supreme Court dismissed on Friday an insolvency application against Inox Wind Ltd. by GRI Towers India Pvt. over the recovery of contractual dues.
A three-judge bench, headed by Chief Justice of India DY Chandrachud, said that GRI could initiate arbitration proceedings against Inox as per the contract, but no respite would be available under the Insolvency and Bankruptcy Code.
GRI, which is in trade and service relating to the business of providing equipment and manpower, had approached the National Company Law Tribunal, alleging a default of Rs 1.7 crore, which also included interest for delay in payments.
The principal amount in this case was less than Rs 1 crore, which is lower than the threshold required to initiate an insolvency proceeding under the IBC.
After the NCLT rejected the plea, it moved to the National Company Law Appellate Tribunal, which also upheld the order and reiterated that the IBC proceedings were "not proceedings for recovery of contractual dues".
Shares of Inox Wind were trading 3.16% lower at Rs 437.75 apiece on the NSE, compared to a 1.12% advance in the benchmark Nifty 50 as of 1.53 p.m.
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