NCLT initiates insolvency proceedings against ABW Infrastructure

The National Company Law Tribunal (NCLT) has initiated corporate insolvency resolution process against ABW Infrastructure under Section 7 of the Insolvency and Bankruptcy Code 2016. The court has appointed Anand Chandra Swain as the interim resolution professional (IRP) for the case. It directed the IRP to make a public announcement within three days of the order. Bipn Industries pleaded that it had invested Rs 91.54 lakh in ABW Gateway Tower. The return on investments were to occur by way of monthly assured returns of Rs 50 per sq ft and thereafter, lease rent arising out of the proposed office space to be alloted and delivered and transferred in their name. The memorandum of understanding (MoU) was signed in July, 2011 while the returns on investment were to start in August 2011. The financial creditor received assured returns till December 2014 but since then no assured returns have been paid by the builder.