Economic Times reported that insolvency appellate tribunal NCLAT on has allowed Jindal Stainless appeal and set aside the NCLT order, which had permitted Shyam Sei & Power Setting aside the NCLT order. NCLAT bench headed by Chairperson Justice Ashok Bhushan said “Without there being any valid reason ought not to have been interfered with the voting on the Resolution Plans which had already commenced on 7 August 2022. As a result of the NCLT order, the voting process was abandoned by the Resolution Professional. We are of the view that the order passed by the NCLT, is unsustainable and deserves to be set aside.” NCLAT also extended the Corporate Insolvency Resolution Process till 28 February 2023, by which the Resolution Professional may file an appropriate Application before the NCLT, bringing relevant facts and development in the CIRP on record. Earlier, in an order on 11 August 2022, the Mumbai bench of the NCLT had permitted Shyam Sei & Power Ltd to submit a revised resolution plan, even after when the voting of the Committee of Creditors of Mittal Corp had already commenced on 7 August 2022. CIRP was initiated by the NCLT against Mittal Corp on 10 November 2021 and six resolution plans were received, including Jindal Stainless, Shyam Sei & Power, Rimjhim Ispat, Saarloha Advanced Material, Kalyan Toll Infrastructure and Trishakti Power. After considering the report on the qualitative evaluation of the Resolution Plans, the CoC resolved to put four plans, including that of Shyam Sei & Power to vote. Voting was to commence from 5 August till 26 August 2022. Later, Shyam Sei approached RP with a revised offer, which was declined by him. Soon after the voting commenced, Shyam SEL approached the NCLT, seeking direction that Resolution Professional to consider the revised offer dated 29 July 2022. Mittal Corp, which has two steel making units, is an established manufacturer of stainless steel rebars & has verified claims of INR 1,587 crore. The offer from the highest bidder translates to a recovery of 16% for lenders Punjab National Bank, State Bank of India. In 2016, lenders attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated, and lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from PNB.
Economic Times reported that insolvency appellate tribunal NCLAT on has allowed Jindal Stainless appeal and set aside the NCLT order, which had permitted Shyam Sei & Power Setting aside the NCLT order. NCLAT bench headed by Chairperson Justice Ashok Bhushan said “Without there being any valid reason ought not to have been interfered with the voting on the Resolution Plans which had already commenced on 7 August 2022. As a result of the NCLT order, the voting process was abandoned by the Resolution Professional. We are of the view that the order passed by the NCLT, is unsustainable and deserves to be set aside.” NCLAT also extended the Corporate Insolvency Resolution Process till 28 February 2023, by which the Resolution Professional may file an appropriate Application before the NCLT, bringing relevant facts and development in the CIRP on record. Earlier, in an order on 11 August 2022, the Mumbai bench of the NCLT had permitted Shyam Sei & Power Ltd to submit a revised resolution plan, even after when the voting of the Committee of Creditors of Mittal Corp had already commenced on 7 August 2022. CIRP was initiated by the NCLT against Mittal Corp on 10 November 2021 and six resolution plans were received, including Jindal Stainless, Shyam Sei & Power, Rimjhim Ispat, Saarloha Advanced Material, Kalyan Toll Infrastructure and Trishakti Power. After considering the report on the qualitative evaluation of the Resolution Plans, the CoC resolved to put four plans, including that of Shyam Sei & Power to vote. Voting was to commence from 5 August till 26 August 2022. Later, Shyam Sei approached RP with a revised offer, which was declined by him. Soon after the voting commenced, Shyam SEL approached the NCLT, seeking direction that Resolution Professional to consider the revised offer dated 29 July 2022. Mittal Corp, which has two steel making units, is an established manufacturer of stainless steel rebars & has verified claims of INR 1,587 crore. The offer from the highest bidder translates to a recovery of 16% for lenders Punjab National Bank, State Bank of India. In 2016, lenders attempted to sell the company to a strategic buyer by converting its debt into 51% equity under the then prevailing Strategic Debt Restructuring scheme approved by the Reserve Bank of India. However, the account deteriorated, and lenders were unable to find any buyer. It was subsequently admitted to NCLT following a petition from PNB.
