HCL Tech clarifies on the buzz of NCLAT stay order on insolvency proceedings; Stock dips 3%

24 Jan 2022 , 01:22 PM

HCL Technologies Ltd has clarified on a news item appearing in livemint.com on January 20, 2022, captioned “NCLAT stays insolvency proceedings against HCL Tech”.

In a reguatory filing, the company said that there was a matter of general contractual/commercial dispute with one of the vendors of the Company for a meagre amount of Rs. 3.54 crores dating back to 2015-18, for which the vendor incorrectly took the dispute to the Hon’ble National Company Law Tribunal (NCLT).

NCLT, New Delhi passed an order for initiating the Corporate Insolvency Resolution Process (CIRP) under the Insolvency & Bankruptcy Code, 2016. The Company, on receipt of this order, immediately filed an appeal with the National Company Law Appellate Tribunal (NCLAT), New Delhi. NCLT’s order was stayed by NCLAT on January 19, 2022, which was within a period of less than 24 hours from the receipt of the NCLT Order by the Company.

Referring to NCLT’s order, the Hon’ble NCLAT has noted in its order that “The Adjudicating Authority proceeded to decide the dispute between the parties like a civil court which ought not to have been done.” Copy of the NCLAT order is attached for reference.

With this background, it is respectfully submitted that no event has occurred that has triggered an obligation for the Company to make announcement.

At around 1:22 PM, HCL Tech was trading at Rs1,136.15 apiece down by Rs31.7 or 2.71% on the BSE.