KSK Mahanadi Power Company through its Resolution Professional’s (RP) counsel informed NCLT, Hyderabad, on Monday, that a change of circumstances warrants a fresh invitation of bids under the corporate insolvency resolution process (CIRP) for KSK Mahanadi Power, which was admitted into insolvency in October 2019.
One of the prospective resolution applicants (PRAs) of KSK Mahanadi, Megha Engineering & Infrastructures Limited had filed a plea before NCLT questioning the intention of RP to invite fresh bids when 12 PRAs have already been shortlisted under the first round of bidding.
The RP argued that since KSK Mahanadi would now be undergoing CIRP as a separate entity, the changed circumstance requires a fresh round of bidding. The RP also said that the committee of creditors (CoC) and eight out of Twelve PRAs have approved fresh bidding.
Last month, the National Company Law Tribunal (NCLT) lifted a stay on the CIRP of KSK Mahanadi as the CoC had voted in favour of KSK Mahanadi’s bidding on a standalone basis rather than combining it with other two entities of KSK Mahanadi also undergoing CIRP.
The two entities were KSK Mahanadi Water and Raigarh Champa Rail. But Megha Engineering’s counsel contended that the RP has failed to provide any reason for inviting fresh bidding, and the tribunal has granted no specific permission to go for another round of bidding.
Prominent power companies such as Adani Power, Jindal Power and Vedanta Ltd have already submitted their bids in the first round, added the counsel.
The Tribunal remarked, “They can only interfere with CoC’s decision on the touchstone of capriciousness and arbitrariness.”