Mumbai: The Supreme Court has initiated Falcon Tires insolvency proceedings, agreeing to hear the plea of defaulter Pawan Ruia, who he claimed was deprived of the principles of natural justice as he did not have enough time to respond. Loan Notice.

Last April, after ARC’s acquisition of 90% of the shares of Falcon Tires, with Edelweisss Asset Reconstruction Company filed a petition with the National Bankruptcy and Insolvency Code-led lender (NCLT), Bankruptcy and Insolvency Code requirements under the Bankruptcy and Insolvency Code (IBC) Falcon Default Corp. Falcon Tires filed suit. Debt financing has been sought from the corporate court. Debt financing has been sought from the corporate court. /pFalcon Tire ET has not responded to emails. Edelweiss ARC officials declined to comment on the specific case.

However, Antony, chief executive of Edelweiss ARC Siby, said: “This series of developments highlights the hurdles that IBC-based lenders will face in resolving cases, but we are determined that IBC will succeed.”

The case occurred after NCLT filed an IBC proceeding with Falcon Tires originator Pawan Ruia to NCLT on the grounds that he did not have enough time to respond to the lender’s notice in the form of an advertisement. Newspaper.

NCLT agreed to hear the objections of the borrower. However, instead of contacting NCLT, Ruas asked the Karnataka High Court to intervene. KHC ruled in favor of the promoters. The borrower’s case was justified and the court said it would hear his plea after the vacation resumes in June.

Further, the KHC directed that no decision would be taken before the NCLT hears the case, which comes as a big blow to the lender.

Edelweiss ARC Due to the delay of more than a month (since May, petition to the Supreme Court Since the adjournment of the court) may affect the resolution. As per the law, the lenders have been on NCLT After receiving the case 180 Develop a viable solution to revive the company within days, failing which the company’s assets will be liquidated.

The Supreme Court ruled that since the timetable set by NCLTLT is sacred and inviolable, the lender can continue with the insolvency proceedings, including appointing experts for interim solutions and agreeing to recover debts from all creditors. However, the Supreme Court said the borrower may hear objections after the June vacation.

Edelweiss ARC Deloitte Consulting has been appointed as an expert on interim resolution. Apollo Tires, JK Tires and Ceat Tires have expressed interest in acquiring Karnataka-based Falcon Tires and the credit worthiness of the company could be close to Rs 600-700 crore, a senior bank official said.