Mumbai: The cost of unpaid companies by companies traded publicly to the exchange are ‘maturity rules’ and not ‘operational debt’ under the summons process, the recent National Law Tribunal (NCL) said.
The Appellate Agency order comes in a case between BSE and Gujarat-based KCCL plastic, which has not yet paid the registration fee to the exchanges since the 2014 fiscal.
Recording costs are below the Ambit ‘rules’, where the SBI regulator market is entitled to recover.
The default company, becomes a registered entity below, has an obligation to follow the norms determined by the regulator for recovery of its contributions, NClat said in its order.
“The bankruptcy law committee shows that regulatory contributions cannot be recovered under ‘operational debt’,” said Bench Nclat two members.
The Appellate Agency also upholds the order delivered by the Tribunal National Law (NCLT) as of December 31, 2020, which has dismissed the BSE request to begin the bankruptcy process on KCCL plastic.
“We have carefully examined the request for this case and came to the conclusion that there was no disturbance needed in a stabbed order.
Therefore, the command which was reduced on December 31, 2020, was passed by NCLT – Ahmedabad Bench, with this was confirmed.
Appealing is dismissed, “said NClat.
AHMedabad-based KCCL plastic is registered in BSE on October 27, 1993 and, in accordance with the listing agreement, he must pay the cost of an annual list (ALF) on or before April 30 every year.
After plastic KCCL failed to pay the registration fee since FY14, the exchange has sent several reminders to the company to remove the arrears, but it does not pay.
On March 15, 2019, BSE sent a request record of Rs 10.7 lakh to the company but returned not to be sent.