The National Company Law Tribunal has ordered corporate insolvency resolution process against Assam Company IndiaBSE -5.94 % for defaulting Rs 596 crore in payments to Srei InfrastructureBSE 0.78 %.
The company, which is into multifaceted activities from tea plantation to oil & gas exploration, had guaranteed a Rs 100 crore loan taken by one Gujarat Hydrocarbon & Power SEZ Ltd in January 2011, is facing the bankruptcy proceedings for failing to honour the guarantee.
Assam Company, promoted by Aditya Jajodia, had agreed to repay the debt with interest and penalty as a guarantor in the event of default by the principle borrower. The overdue amount on the loan account has grown to Rs 596 crore.
The ordered was passed by NCLT’s Guawahati bench last week.
“We have issued the public notice inviting claims. In the meantime, we will be proceeding for appointment of valuers to value the assets of the company,” said Vinod Kothari, who has been appointed as the interim resolution professional.
“Our primary concern at this point is to protect the cashflows and assets of the company. Once the claims and the valuations are received, we will be preparing an information memorandum based on which potential resolution plans can be prepared,” he said.
It can be noted that the law also has provisions to protect a guarantor in such cases. “Even if the corporate debtor (Assam Company) has shed off his assets in satisfaction of the debt which he reportedly owed to financial creditor (Srei Infra) as being the guarantor to the loan aforesaid, the corporate debtor has the avenue to get his money from assets of the principal debtor,” the Justice PK Saikia said in his judgement on October 26.
