NEW DELHI: The Supreme Court has allowed the consortium of Dickey Alternate Investment Trust (DAIT) and Adani Power to operate a power plant of Chennai-based power generation company Coastal Energen. The apex court on Thursday restored the situation before the National Company Law Appellate Tribunal (NCLAT) on September 6, 2024.
The NCLAT had stayed the NCLT order that approved the resolution plan submitted by Adani Power consortium. The Successful Resolution Applicant (SRA) – the consortium of DAIT and Adani Power – had challenged the NCLAT order dated September 6, which effectively put on hold the `3,500 crore resolution plan put forth by them for revival of Coastal Energen.
However, the Supreme Court clarified its order will be subject to the condition that the consortium will not dismantle the plant, create any third-party rights, alienate the plant or create any financial obligations except in the ordinary course of business. The court has directed the parties not to seek any adjournment of the NCLAT hearing scheduled on September 18. The Court clarified that the order should not be construed as any observation on the merits of the appeal pending before the NCLAT.
On August 30, 2024, the Chennai bench of the NCLT had approved a resolution submitted by the consortium for a sum of Rs 3,500 crore. The NCLT order was challenged by ex-promoter AR Buhari, who has alleged ‘glaring irregularities’ in the way the resolution plan was approved by the lenders. The promoter of the power company has contended that Adani Power piggy-backed DAIT to get a back-door entry into the bidding process after Adani’s expression of interest (EoI) was rejected by the resolution professional (RP) for delayed submission.