NCLT Directs Bira, Creditors to Mediation in Insolvency Case

The National Company Law Tribunal (NCLT) at New Delhi has sent Bira and its creditors to mediation to explore a settlement of insolvency proceedings pending against the company.A special bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi passed the order on September 15 while hearing multiple proceedings against B9 Beverages Limited, including a Section 7 insolvency plea filed by Unity Small Finance Bank Limited."It is made clear that if no settlement is arrived between the parties in the meeting directed to be scheduled, no further indulgence would be shown in the matter," the Tribunal said.The direction came after the Tribunal was told that financiers were willing to infuse funds into the company and revive it. Counsel appearing for the company submitted that settlement discussions were being held with the creditors.However, several creditors expressed reservations about the proposal. Unity Small Finance Bank placed before the Tribunal a September 10 letter to show that an offer of ₹3 crore had been made against dues of over ₹19.04 crore. It argued that the proposal could not be regarded as a serious or plausible settlement offer.Axis Bank, on the other hand, informed the Tribunal that it had received a settlement offer and was considering it.Counsel for some of the other creditors alleged that the settlement attempts were only intended to buy time. They raised apprehensions that the company's assets could be pilfered. They also