The employees of debt-ridden RTIL (formerly Reid & Taylor (India) Ltd) plan to move the National Company Law Appellate Tribunal (NCLAT) in a couple of days, challenging a Mumbai tribunal’s order to liquidate the beleaguered textile major.
On Tuesday, the Mumbai Bench of the National Company Law Tribunal (NCLT) had ordered the liquidation of RTIL following a series of unsuccessful attempts to revive the firm.
“NCLT has not considered Indian Gas’ group companies’ net worth, which is more than ₹95 crore. We will move NCLAT within two days, and we will present all the documents before the appellate tribunal,” MS Prasanna, General Secretary of RTIL Employees’ Association, told
Passing its order on Tuesday, a Bench comprising Bhaskar Pantulu Mohan and V Nallasenapathy had said it had no option but to place the company into liquidation as the suitors had failed to satisfy their respective net worth. It also asked the creditors and the Insolvency Resolution Professional (IRP) to ensure that the company is sold as a going concern so that workers’ interests are protected.
Last week, New Delhi-based Indian Gas informed NCLT’s Mumbai Bench of its decision to bid for the firm. However, it failed to prove its net worth. Earlier, Gujarat-based CFM Asset Reconstruction Company, which had submitted ₹2 crore as partial earnest money deposit (EMD), withdrew from the race.
Bids withdrawn
UK-based Boustead Plc and Hong Kong-based SPGP Holdings (HK) had also staked claims, but later withdrew.
In December 2018, nearly 200 employees of RTIL formed an association to scout for potential investors and revive the company, and prevent it from being liquidated.
RTIL, a premium clothing provider that sells under the international brand ‘Reid & Taylor’ in India, is struggling to pay off its ₹3,800-crore debt. It still runs a factory with about 30-40 per cent production capacity in Mysuru, and employs about 1,200 personnel and another 200-250 contract labourers. The company has 1,000-1,500 dealers across the country.