NCLAT stays insolvency process of RP Infosystems

The National Company Law Appellate Tribunal (NCLAT) has set aside an order of insolvency against Kolkata-based RP Infosystems as the plea filed by the financial creditor, State Bank of India (SBI), was beyond the limitation period of three years.

In its judgment, the NCLAT said that since the insolvency petition moved by SBI in 2019, seven years after RP Infosystems’ accounts were declared non-performing assets in 2013. In 2020, the Kolkata bench of the National Company Law Tribunal (NCLT) had admitted the insolvency petition against the company based on the application moved by SBI.

In its judgment, delivered last Wednesday and made available later, the NCLAT set aside the NCLT’s order and held that the firm was “allowed to function independently through its Board of Directors with immediate effect”.

The order by the NCLAT follows even as two of RP Infosystems directors, Shibaji Panja and Kaustav Ray, are accused of financial fraud. Panja and Ray had in 2018 been arrested by the CBI for cheating and defrauding a consortium of 10 banks led by Canara Bank for a total of Rs 515 crore. The consortium includes SBI, its then subsidiaries State Bank of Bikaner & Jaipur and State Bank of Patiala, Union Bank of India, Punjab National Bank, Allahabad Bank, Oriental Bank of Commerce, and Central Bank of India.

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