NEW DELHI :
The Nationwide Firm Legislation Tribunal has ordered to provoke insolvency proceedings towards Aviva Life Insurance in a case filed by Apeejay Belief.
A two-member bench of NCLT Delhi comprising Justice R D Khare and Sumita Purkayastha allowed the plea towards Aviva Life Insurance coverage and has additionally appointed an interim decision skilled to run day-to-day affairs of the corporate.
Apeejay Belief, which had leased its Mumbai-based (Vashi) premise to Aviva Life Insurance coverage, claimed a default of ₹27.67 lakh as an operational creditor for not receiving funds in direction of service tax and license payment for the premise.
In response to the belief, Aviva — a JV between Dabur Make investments Corp (Dabur group) and Aviva Worldwide Holding Ltd — has not paid license payment, automobile parking, upkeep/service cost and repair tax. It had made its final cost on this regard on October 5, 2017 and from then the debt was mendacity due.
“Contemplating the circumstances this tribunal is inclined to confess this petition and provoke CIRP of the company debtor. Accordingly this petition is admitted,” The Nationwide Firm Legislation Tribunal (NCLT) stated.
It has additionally declared a moratorium beneath part 14 of the Insolvency and Chapter Code, defending the corporate from its lenders in the course of the course of.
Throughout the proceedings, Aviva had questioned the maintainability of Appeejay Belief’s plea on the bottom that it’s an insurance coverage firm and thus being a monetary service supplier, IBC can’t be utilized towards it.
In response to it, there’s an absolute bar beneath IBC to provoke any proceedings towards insurance coverage firms.
This was rejected by the NCLT saying “the operational creditor doesn’t have any declare in respect of contract of insurance coverage. The declare is with respect to the excellent license payment and the service tax quantity”.
“Therefore, the company debtor can’t use the supply of … IBC as a blanket cowl to say exclusion from IBC proceedings on the bottom that it’s an monetary service supplier,” stated the NCLT in its order dated November four, 2019.
In the meantime, Aviva Life Insurance coverage in a press release stated: “The difficulty at hand is a business dispute with a vendor and Aviva reserves it rights & treatments within the court docket of legislation. Our prospects insurance policies are totally safe & we stay dedicated to rising our enterprise and prospects in india”.