The National Company Law Appellate Tribunal (NCLAT) has upheld the 2019 Resolution Plan of Adani Power's bid for Korba West Power and has soought Shapoorji Pallonji & Company to pursue arbitration proceedings for outstanding claims.

A 2-member NCLAT bench said "there is no illegality in the order of the approval of the resolution plan by the Adjudicating Authority (NCLT) and it does not see any reason to set apart the resolution plan by Adani Power Ltd. The appellate tribunal was deciding over a petition filed by Shapoorji Pallonji & Company against an order passed by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) on June 24, 2019 sanctining the resolution plan by Adani Power.

Shapoorji Pallonji & Compnay has claims of Rs 45.22 crore and an arbitration was going for the same. However, Korba West Power has itself triggered the Corporate Insolvency Resolution Process under section 10 of the Insolvency and Bankruptcy Code. Following this, the company came under moratorium and the said arbitration proceedings could not proceed further and was stayed. Later Shapoorji Pallonji & Co claimed the amount as an operational creditor during the CIRP. However, the said claim was rejected by the resolution professional, and the Adani Power plan was approved by NCLT.

In response to Shapoorji Pallonji & Co’s assertion that no written notice of its rejection was provided, RP had said that it is obligated to provide Notice to the ‘Operational Creditors’ only if the aggregate dues are greater than 10 percent of the ‘debt’ of the ‘Corporate Debtor’.

Adani denies report of USD400 mn debt against Australian coal port asset

Gautam Adani slips to No. 30, Group stocks lose Rs.12-La-Cr

Rahul Gandhi says he ‘still doesn’t have a home', called PM Modi and Adani ‘one’