Gail India has filed an application before the National Company Law Tribunal, opposing a resolution plan that Reliance Industries has proposed in partnership with JM Financial Asset Reconstruction Company for Alok Industries. In its petition before the Ahmedabad bench of the NCLT, the state-run gas transporter said the proposal had ignored its claim of Rs 506 crore as an operational creditor to the bankrupt textile manufacturer.
Alok Industries is one of the top 12 loan default cases in India and under insolvency proceedings for the past year and a half. NCLT cases are supposed to be resolved within a 270-day period.
ET has obtained a copy of the application. Senior advocate Sudhir Nanavati, along with Prachiti Shah and Akshat Khare, represented Gail India at the NCLT.
Last year, Gail filed another application demanding its recognition as an operation creditor. The matter was reserved on December 7 for order.
Alok Industries’ resolution professional had initially declined Gail’s claim to be recognised as operational creditor. This has “jeopardised the entire investment of (the) applicant for ensuring availability of gas to (the) corporate debtor,” the latest application said.
The Ahmedabad bench of the NCLT is scheduled to hear a series of Alok Industries-related matters on Friday.
Operational creditors are those who supply goods and services. The resolution plan for Alok Industries proposes to make full payments to such creditors with claims only up to Rs 3 lakh, according to Gail’s application.
There are about 55 financial creditors to the company.
Gail said the dues were from 2014 to 2016.
Source: Economic Times