The National Company Law Appellate Tribunal (NCLAT) on Friday dismissed Kesoram Industries‘ appeal against the National Company Law Tribunal’s Kolkata ruling that had rejected its claim of being a financial creditor of Birla Tyres Ltd.
The appellate tribunal held that Kesoram had failed to prove that the transaction was a deposit of money or a loan from its account to Birla Tyres’ account, and hence, “the adjudicating authority (NCLT, Kolkata) didn’t commit any error in rejecting the application filed by the appellant”.
BK Birla Group company Kesoram Industries Ltd had filed an application in NCLT, Kolkata, urging it to direct the resolution professional (RP) to consider it as a financial creditor of Birla Tyres. The RP had rejected Kesoram Industries‘ claim of ₹518.3 crore, which the company said was given to Birla Tyres as an inter-company loan.
Birla Tyres Limited was started in 1991 and was demerged in 2019 from Kesoram Industries.
