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Informist, Wednesday, Jan. 1, 2025

 

NEW DELHI – The Kolkata bench of the National Company Law Tribunal has approved Jharkhand Vidyut Vitran Nigam Ltd.'s INR 4.12-billion resolution plan for debt-ridden Tayo Rolls Ltd., a subsidiary of Tata Steel Ltd. 

 

The tribunal said that the resolution plan includes only lease rights to Jharkhand Vidyut Vitran Nigam of a 50-acre land parcel that was sub-leased to Tayo Rolls by Tata Steel under a sublease agreement in 1969. The tribunal noted Jharkhand Vidyut Vitran Nigam's undertaking that "even in the case the government of Jharkhand does not renew the lease directly in favour of the corporate debtor- the resolution plan, as approved by committee of creditors, will not be impacted in any manner".

 

The tribunal said that the resolution plan approved would be binding on Tayo Rolls and other stakeholders involved in terms of section 31 of the Insolvency and Bankruptcy Code, 2016, so that revival of the debtor company would come into force with immediate effect. The moratorium imposed under section 14 of the Code would cease to have effect from the date of this order, it said. 

 

In 2019, the tribunal had admitted a petition by operational creditor Suresh Narayan Singh to start insolvency proceedings against Tayo Rolls. The total admitted value of debt against Tayo Rolls was INR 8.35 billion. In 2020, the committee of creditors had approved Jharkhand Vidyut Vitran Nigam's plan with 92.45% votes in favour.

 

At 1128 IST, shares of Tata Steel Ltd. were down 0.4% at INR 137.50 on the National Stock Exchange.  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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