Insolvency appellate tribunal NCLAT on 18 January allowed Jindal Stainless’ appeal and set aside the NCLT order that permitted rival Shyam Sel and Power Ltd to submit a revised resolution plan for the debt-ridden Mittal Corp Ltd.
On 11 August, 2022, the Mumbai bench of the NCLT had permitted Shyam Sel and Power Ltd to submit a revised resolution plan, despite the voting of the Committee of Creditors (CoC) of Mittal Corp had already commenced on 7 August, 2022.
Setting aside the NCLT order, a two-member bench of the NCLAT said NCLT “… without there being any valid reason ought not to have been interfered with the voting on the Resolution Plans which had already commenced w.e.f. on August 7, 2022”.
As a result of the NCLT order, the voting process which had commenced on August 7, 2022, was abandoned by the Resolution Professional, the appellate tribunal said.
“We are of the view that the order passed by the NCLT dated August 11, 2022, is unsustainable and deserves to be set aside,” said the NCLAT bench headed by Chairperson Justice Ashok Bhushan.
The NCLAT observed that the voting process was disrupted due to the NCLT and view that it should commence afresh and be completed in a time-bound manner.
“As per the decision of the CoC dated August 3, 2022, the Resolution Professional may initiate a fresh voting process on the Resolution Plans received in the process which may be completed within the period of one month,” said the NCLAT.
The NCLAT also extended the Corporate Insolvency Resolution Process (CIRP) 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.
CIRP was initiated by the NCLT against Mittal Corp on November 10, 2021, and six resolution plans were received, including Jindal Stainless and Shyam Sel and Power Ltd.
After considering the report on the qualitative evaluation of the Resolution Plans, the CoC resolved to put four plans — including that of Shyam Sel — to vote. Voting was to commence from August 5 till August 26, 2022.
