The National Company Law Tribunal, Hyderabad bench, has admitted a petition to initiate corporate insolvency proceedings against Madhucon Projects Limited and appointed an interim Resolution Professional (RP).

On a petition moved by Shri Srikrishna Rail Engineers, a Mumbai-based company, seeking initiation of insolvency resolution process under the Bankruptcy and Insolvency Code, 2016, the Judicial Member appointed Rakesh Rathi as the Insolvency Resolution Professional.

The case relates to dues of ₹4.17 crore the petitoner sought for having taken up works for the Hyderabad-based construction and infrastructure company.

Judicial Member Ratakonda Murali, after hearing the petitoner’s pleas and responses by the debtor which challenged the move and also contended that it was time-barred, admitted the petition, declared a moratorium and directed initiation of proceedings.

While prohibiting initiation of suits and continuation of pending suits and proceedings against Madhucon, including execution of any judgement, it allowed no disruption to the debtor’s business.

The debtor sought to contest stating that the claim had not yet crystallised to become debt and that the petitioner was initiating insolvency proceedings as a tool to harass the respondent. It also contended that the process was time-barred.

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