NEW DELHI: The insolvency appellate tribunal NCLAT has dismissed the plea of Jindal Power to allow the company to participate in the ongoing resolution process of debt-ridden Thoothukudi coal terminal.
A two-member bench of the National Company Law Appellate Tribunal (NCLAT) upheld the earlier order passed by the Mumbai Bench of NCLT, which said that under CIRP Regulations, Jindal Power Ltd (JPL) was “ineligible to submit a Resolution Plan” for Thoothukudi coal terminal.
The appellate tribunal said the process prescribed in the IBC asks for maximisation of the value, but it cannot give a go-by to the existing specific CIRP Regulations, which prevent the entry of companies that are not in the final list of prospective resolution applicants.
The NCLAT further directed the resolution professional and the Committee of Creditors (COC) to decide on the bid received from Seapol.
“We do not find merit in the present Appeal, which if allowed would mean contravention and violation of Regulation...The Appeal is, therefore, dismissed,” said the NCLAT. “RP and COC should proceed with its CIR proceedings and decide the resolution plan available with them either way,” it added.
JPL had challenged the August 2023 order of the National Company Law Tribunal, which said JPL was “ineligible” as the CIRP Regulations prevented it from submitting any bids midway.