NCLAT Rejects Jindal Power Plea in Tuticorin Coal Terminal Case

9 Jan 2024 , 12:20 PM

The Mumbai National Company Law Tribunal (NCLT) decision that prevented Jindal Power Limited from presenting a resolution plan during Tuticorin Coal Terminal’s bankruptcy procedure was dismissed by the National Company Law Appellate Tribunal (NCLAT) on Monday.

The appellate panel dismissed the appeal, stating that they could not see any validity in it and that to accept it would be against the Corporate Insolvency Resolution Process (CIRP) regulation.

Jindal Power desired to be taken into consideration as a bidder for the purchase of Tuticorin Coal Terminal Pvt Ltd, which was insolvent. Only if Jindal Power’s name was on the final list of Prospective Resolution Applicants (PRA) that the Committee of Creditors (CoC) prepared would the NCLT have permitted it to take part in the resolution process.

Even though Seapol’s name was absent from the final list of PRA created by the CoC, Jindal Power had maintained that the business should have the same opportunity to submit a resolution plan.

In its earlier hearing, the NCLAT noted that if Jindal Power is permitted to submit a resolution plan, it must also request that other organisations that are interested in assuming control of the bankrupt company submit new resolution plans. In February 2020, Tuticorin Coal Terminal declared itself insolvent.

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