NCLT initiates insolvency process against DS Kulkarni Developers

The Mumbai bench of the National Company Law Tribunal (NCLT) has initiated a corporate insolvency resolution process against D S Kulkarni Developers Limited (DSKDL), the sole public limited company of jailed developer D S Kulkarni, alias DSK, after admitting a petition for the same by the Bank of Maharashtra (BoM) over a default of Rs119.48crore debt by the firm. An interim resolution professional (IRP), appointed by the tribunal under the Insolvency and Bankruptcy Code (IBC), released a public announcement on Monday calling upon the financial creditors as well as fixed deposit (FD) holders and home buyers in DSKDL projects to submit their claims with proof by October 9. The IBC, which came into force in 2016, is the country’s bankruptcy law that seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. Among other things, it provides for a time-bound resolution of insolvency and bankruptcy proceeding involving corporates and individuals. In an order on September 26, a two-member NCLT bench of judicial member V P Singh and technical member Rajesh Singh placed the corporate debtor, i.e. the DSKDL, under a moratorium by prohibiting institution of any suits or continuation of pending suits against the company before any court, tribunal or adjudicating authority.