The National Company Law Appellate Tribunal (NCLAT) has dismissed Srei Multiple Asset Investment Trust (SMAIT)’s appeal that challenged the May 14 order of the Cuttack Bench of the National Company Law Tribunal (NCLT) admitting IDBI Bank’s insolvency plea against Odisha Slurry Pipeline Infrastructure (OSPIL), an Essar group company.
IDBI Bank moved the plea as OSPIL had failed to repay its Rs 471-crore debt. Srei Infrastructure Finance, SMAIT’s sister firm, had filed an intervention petition before the Cuttack Bench opposing IDBI’s prayer, but the adjudicating authority did not entertain the plea.
Not satisfied with NCLT’s order, Srei Infrastructure Finance moved a plea before the NCLAT which also observed that Srei Infrastructure Finance did not have any right to “intervene at the stage of admission”. However, the NCLAT allowed Srei Infrastructure to appeal before the adjudicating authority. Before the adjudicating authority, Srei Infrastructure Finance said it was opposing IDBI Bank’s application only on the ground that though it had extended a Rs 136.50-crore loan to OSPIL on the basis of a business transfer agreement, the NCLT did not accept such submission.
Srei Infrastructure’s counsel contended that IDBI Bank’s claim was considered by the resolution professional in the corporate insolvency resolution process against Essar Steel and as such IDBI can not file a separate insolvency application against OSPIL.