Adani Group Challenges NCLAT's Coastal Energen Ruling

11 Sep 2024 , 11:57 AM

The Dickey Alternative Investment Trust and the Adani Power consortium have filed a Supreme Court petition challenging the National Company Law Appellate Tribunal’s (NCLAT) recent directive to maintain the status quo in Coastal Energen Private Limited’s Corporate Insolvency Resolution Process (CIRP).

On September 6, the NCLAT in Chennai issued a status quo ruling in response to an appeal against the NCLT’s acceptance of a ₹3,335 crore settlement plan. The Dickey Alternative Investment Trust and Adani Power collaboration proposed reviving Coastal Energen, a Tuticorin-based power plant operator.

The appellate tribunal, which included Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, directed the resolution professional, Radhakrishnan Dharmarajan, to continue operating the Coastal Energen plant while keeping the resolution amount in a separate account until the case is decided on its merits.

Following the NCLT’s approval last month, the consortium immediately followed the resolution plan and took control of Coastal Energen. Secured lenders of Coastal Energen were to receive roughly ₹3,330 crore, accounting for 28.52% of the acknowledged claims of around ₹11,677 crore.

For feedback and suggestions, write to us at [e-mail]