Latest News | NCLAT Sets Aside NCLT Order Allowing Suraksha-led Consortium to Withdraw Bid for Wind World

New Delhi, Sep 21 (PTI) Insolvency appellate tribunal NCLAT has set aside an order of the NCLT allowing the successful bidders of debt-ridden Wind World (India) Ltd to withdraw their bid even after it was approved by the lenders.

The NCLAT bench headed by Acting Chairman Justice A I S Cheema, who was reinstated by the government till September 20, remanded the matter back to the Ahmedabad bench of the National Company Law Tribunal (NCLT) and directed it to take a decision in a month on the bid submitted by the consortium.

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The consortium of bidders comprises Suraksha Asset Reconstruction Ltd, Lakshadweep Investment and Finance and Suraksha Realty Ltd.

"The matter is remitted back to the Adjudicating Authority (NCLT). Adjudicating Authority is directed to consider... filed by the Resolution Professional under Section 30/31 of IBC urgently and decide the same within one month," the NCLAT said.

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The appellate tribunal also directed that "the Successful Resolution Applicant and Bank concerned will keep the Performance Bank Guarantee (Rs 75 crore) alive till and subject to decision of the Adjudicating Authority."

Earlier, the consortium had bid for Wind World (India) Ltd, which according to reports owes around Rs 4,700 crore to lenders.

The consortium's bid was approved by the Committee of Creditors (CoC) of the company and was placed before the NCLT for approval by the resolution professional.

However, the consortium later filed an application before the NCLT to withdraw its resolution plan.

The NCLT had on September 8, 2020 not only permitted them to withdraw the bid but also directed returning the performance bank guarantee given by the consortium.

Aggrieved by the direction, the CoC and the resolution professional filed an appeal before the National Company Law Appellate Tribunal (NCLAT).

The lenders requested the appellate tribunal to set aside the NCLT order and direct it to take a decision on the bid submitted by the consortium under Sections 30 and 31 of the Insolvency and Bankruptcy Code (IBC).

Section 30 lays down the requirements for approval, while Section 31 deals with approval of plans.

According to Section 31, if the NCLT is satisfied that the resolution plan has been approved by the CoC and meets all criteria under Section 30, it shall order approval of the bid which shall be binding on all.

The appellate tribunal set aside the withdrawal order observing that the Supreme Court has laid down law in the Ebix Singapore matter that the resolution plan cannot be withdrawn after it has been approved by the CoC.

"The above judgment clearly applies to the facts of the present matter. It is quite clear that the SRA (Successful Resolution Applicant) could not have been allowed to withdraw the Resolution Plan after it had been approved by the CoC," it said.

Insolvency proceedings against Wind World (India) Ltd, a renewable energy equipment maker, were initiated on February 20, 2018.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)