The National Company Law Appellate Tribunal (NCLAT) on Friday asked the UK-based Liberty House to file a revised affidavit by January 20, outlining specific time-frame and other details of its resolution plan for insolvent steelmaker Adhunik Metaliks and group firm Zion Steel.
On January 7, the two-member NCLAT bench, headed by chairperson Justice SJ Mukhopadhaya, gave Liberty House time till January 9 to submit an “affidavit giving therein its unconditional and unqualified proposal showing time-frame for implementation of the plan”. Liberty House, accordingly, submitted the affidavit within the schedule.
In the Para 12 of the affidavit, the UK-based firm had said: “Liberty House shall deposit, as per directions and under control of NCLAT, a payment of Rs 360 crore (Rs 410 crore less Rs 50 crore already deposited) for Adhunik and Rs 10 crore (Rs 15 crore less Rs 5 crore already deposited) for Zion (against full and final payment to be made to all financial creditors) within 3-4 weeks of NCLAT order in an escrow account specified by NCLAT.”
Hearing the matter on Friday, the NCLAT bench, however, said it had not given Liberty House any direction with regard to the payment and hence, the phrase “as per directions” mentioned in the affidavit was presumptive. “In the absence of any direction given by the NCLAT, as mentioned in the Para 12 of the affidavit, the affidavit is rejected,” the bench said. It has posted the matter for further hearing on January 22. The Kolkata bench of the NCLT had in July 2018 approved the resolution plan submitted by Liberty House, with lenders agreeing to take a haircut of around 92% and settling for Ts 410 crore against their outstanding dues of Rs 5,370 crore.
Sources: Financial Express, January 18, 2020