The National Company Law Tribunal (NCLT) has admitted the insolvency plea filed by public sector lender Bank of India against debt-ridden real estate firm Housing Development and Infrastructure Ltd (HDIL).

In a filing to the BSE, the Mumbai-based real estate firm said the company has been admitted under the provisions of Insolvency Bankruptcy Code (IBC) as per order passed by NCLT pursuant to an application filed by the Bank of India under Section 7 of IBC.

The company further said it is under the process to file an appeal to National Company Law Appellate Tribunal (NClAT) against the order.

On 5 June, the bankruptcy court had directed HDIL to pay ₹98 crore to Bank of India within four weeks. HDIL owes around ₹520 crore to Bank of India and had agreed to pay it in tranches.

"HDIL always wanted to settle the matter with Bank of India. There was upfront amount to be paid. At the group level, the company has paid more than ₹800 crore to various other banks. Therefore we couldn't honour Bank of India," said Subir Kumar, an advocate representing HDIL.

Apart from Bank of India, other public sector banks including Syndicate Bank, Corporation Bank, Union Corporation Bank among others have also filed separate petitions under Section 7 of the Insolvency and Bankruptcy Code (IBC) against HDIL to recover their dues.

"We will take appropriate legal action once we see the order copy," Kumar said. #casansaar (Source - LiveMint)