NEW DELHI: In a setback to Vedanta, the successful bidder for Videocon Industries and other group companies, the appellate tribunal has stayed the resolution proceedings as approved by the Mumbai bench of the National Company Law Tribunal (NCLT).
The National Company Law Appellate Tribunal (NCLAT) has stayed the NCLT order citing ‘exceptional facts’ presented by the appellant – Bank of Maharashtra.
The NCLAT has asked the resolution professional to maintain the previously existing state of affairs in the case and directed the latter to continue to manage the corporate debtors as per provisions of IBC till the next date of hearing on September 7, 2021.
Bank of Maharashtra had moved NCLAT against the June 8, 2021 NCLT order approving the resolution plan submitted by Vedanta.
The appellant had argued that the amount offered to the dissenting financial creditors as per the resolution plan is lower than the liquidation value in violation of the provisions of Insolvency and Bankruptcy Code (IBC). The resolution plan offered to pay Rs 2,900 crore against the creditors’ total claim of Rs 65,000 crore.