Informist, Friday, Oct. 25, 2024

--SC notice to Sarda Energy, SKS Power lenders panel on Torrent Power's plea

--CONTEXT: On Oct 1, NCLT approved Sarda Energy's IBC plan for SKS Power

NEW DELHI – The Supreme Court on Friday issued notices to debt-ridden SKS Power Generation (Chhattisgarh) Ltd., its resolution professional, and committee of creditors, and the successful resolution applicant Sarda Energy and Minerals Ltd. on a plea by Torrent Power Ltd against the approval of Sarda Energy's plan. On Oct. 1, the National Company Law Appellate Tribunal had approved the resolution plan by Sarda Energy and dismissed opposition from Torrent Power, Vantage Point Asset Management Pte. Ltd. and other parties.

"The submission that it is urged (by advocate Abhishek Manu Singhvi) is that the bid which was submitted by Sarda Energy was modified in material respect after the negotiation process. Issue notice. The counter affidavit will be filed in two weeks. Any further steps that will be taken by the second respondent(Sarda Energy) will not create equities..." said the Bench led by Chief Justice of India D.Y. Chandrachud. "There is much more than what meets the eye. That is why we have issued notice," the top court said.

In 2022, the Mumbai bench of the National Company Law Tribunal had admitted a petition by Bank of Baroda to start insolvency proceedings against SKS Power with total claims of INR 18.90 billion. On Aug 13, the tribunal approved Sarda Energy's INR 19.50-billion bid for SKS Power and rejected challenges from unsuccessful resolution applicants Torrent Power, Jindal Power Ltd. and Vantage Point Asset. Challenging this, the resolution applicants moved the appellate tribunal.

Torrent Power had said that discrimination was made towards other resolution applicants, since Sarda Energy was given an opportunity in the guise of seeking clarification to pay INR 2.40 billion upfront payment, which was not proposed earlier.

The appellate tribunal rejected the contention of Torrent Power and other parties, and said the clarification sought by the resolution professional in no manner permitted Sarda Energy or any other resolution applicant to modify the resolution plan. "...we do not find that any sufficient grounds have been made out within the meaning of Section 61(3)(ii) of the IBC(Insolvency and Bankruptcy Code, 2016) to interfere with the decision of the adjudicating authority approving the resolution plan of Sarda, in these appeals filed by unsuccessful resolution applicant," the appellate tribunal had said.

At 1202 IST, shares of Torrent Power were down 1.3% at INR 1,929.35 on the National Stock Exchange, while those of Sarda Energy were down 0.8% at INR 457.50 rupees. End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Reported by Surya Tripathi

Edited by Avishek Dutta

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