Madras HC moved against insolvency applications of corporate defaulters
Updated : November 01, 2018 06:53:18 IST
Petitioner Siddarth Govind, an advocate, submitted that five major corporate bank loan defaulters alone owed around Rs 78,000 crore to various banks.
The petition also sought a direction to the Centre to amalgamate subsidiary companies which have defaulted on bank loan repayments with their promoters under Section 237 of the Companies Act so that the dues become their liability.
The government can ensure that promoter and holding companies are merged with the subsidiaries which have become non-performing assets and have defaulted in bank loans and statutory dues, the petitioner said.