Srei’s revised plan to go before CoC

​Hyderabad:  The Hyderabad Bench of National Company Law Tribunal (NCLT) on Monday directed Resolution Professional Mamta Binani to place the revised resolution plan submitted by Vision India Fund of Srei Multiple Asset Investment Trust (SMAIT) before Committee of Creditors. 

Issuing orders on an interim application filed by SMAIT on July 23, Ratakonda Murali, Member (Judicial), Court-I, Hyderabad Bench, NCLT, said there was time for reconsideration of the resolution plan as NCLAT excluded seven months (from December 11, 2017 to July 20, 2018) from the resolution process. 

“The Counsel for Resolution Professional reported that if direction is given to the RP by this tribunal, the revised Resolution Plan submitted by the Applicant (SMAIT) will be placed before the CoC. So, one more opportunity be given to the Applicant to submit the revised Resolution Plan before CoC,” he said in the order. He directed RP to call a meeting of CoC for this purpose, but there is no deadline for completing this formality.

According to the order, Vision India Fund proposed to make upfront payment to the tune of Rs 368 crore, with the provision for increase in the same by virtue of any increase in the CIRP (Corporate Insolvency Resolution Process) costs, payments to workmen and dissenting financial creditors.

In another order on IA filed by Canara Bank seeking increase in liquidation value, the tribunal directed RP to place the revised claim submitted by Canara Bank before CoC for consideration. In its application, Canara Bank contended that in 12th CoC held on June 14, liquidation value attributable to it was valued at Rs 144.18 crore and it was calculated on the basis of priority of charge. In the 14th CoC meeting held on July 3, the value was reduced to Rs 101.15 crore. 

The public sector bank also maintained that the Resolution professional failed to ensure in the 14th and 15th CoC meetings held on July 3 and July 6 respectively that CoC arrived at a consensus before submitting Resolution Plan voting. As result, the plan failed to get requisite majority of 66 per cent.