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Informist, Friday, Sep 6, 2024

 

NEW DELHI – The Mumbai bench of the National Company Law Tribunal today restored the debt-ridden Lavasa Corp Ltd to the corporate insolvency resolution process on a petition by its creditor Union Bank of India. The tribunal said that Darwin Platform Infrastructure Ltd, the successful resolution applicant of Lavasa Corp, had failed to take action to implement the resolution plan.

 

"...we found that the SRA (successful resolution applicant) has miserably failed to take any positive action to implement the approved resolution plan without any justifiable reasons, no purpose would be served by granting further time to SRA for implementation of the resolution plan," said the tribunal. Any further delay in the resolution of Lavasa Corp would not only severely affect the interest of various stakeholders but would also render the resolution impossible, the tribunal added.

 

The tribunal also rejected the prayer of Darwin Platform, seeking an extension of time for the implementation of the approved resolution plan. "We are further of the considered view that since the SRA is blatantly and consciously responsible for the failure of implementation of the approved resolution plan, its inevitable consequence is the invocation of PBG (performance bank guarantee) furnished by SRA," said the tribunal. It said that the performance bank guarantee was rightly invoked and encashed by Union Bank of India and there was nothing illegal or improper in the same. The tribunal put Shailesh Verma, the resolution professional, in charge of Lavasa Corp.  

 

In July 2023, the tribunal had approved Darwin Platform's resolution plan, which had contemplated an investment of 18.14 bln rupees. The resolution plan's challenge by Union Bank of India was also rejected by the National Company Law Appellate Tribunal in January. 

 

Today, the shares of Union Bank of India ended 1.5% lower at 121.20 rupees on the National Stock Exchange.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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