The Ahmedabad bench of the National Company Law Tribunal’s (NCLT) on Wednesday reserved its order on two pleas by Indian Renewable Energy Development Agency (Ireda) against Gensol Engineering (GEL) and its subsidiary, Gensol EV Lease (GEVL).
Ireda had moved the tribunal under Section 7 of the Insolvency and Bankruptcy Code (IBC) against GEL over a Rs 510 crore loan default and a Rs 218.95 crore default from GEVL.
During the proceedings, the legal team representing Ireda laid out the details of the outstanding debt and GEL’s default in repayment. It is understood that GEL did not dispute the debt and default claims raised by the Ireda and the company only raised technical points of defence, which were countered by Ireda’s lawyers.
The two-member NCLT bench of judicial member Shammi Khan and technical member Sanjeev Kumar reserved the order on the insolvency plea.
Additionally, in the insolvency plea against GEVL, the EV company sought time to file its response in an additional affidavit for the alleged default and was directed by NCLT to file a response by the end of the day. The hearing of GEVL insolvency plea is now scheduled to be heard on Friday, June 13 before NCLT.
During previous proceedings, the Ireda had requested the tribunal to swiftly appoint an interim resolution professional to protect its assets in view of the grave observations in the April 15 order passed by the Securities Exchange Board of India (Sebi).
Under the two pleas, the Ireda is seeking to recover a cumulative principal amount of Rs 729 crore from Gensol Engineering and its subsidiary. The company faces additional claims by financial creditors over alleged unpaid dues. Its share price closed at a low of Rs 51.42 at the NSE from yesterday’s close of Rs 52.47.