The Mumbai bench of the National Company Law Tribunal (NCLT) on Friday asked the counsels for Monnet Ispat’s resolution professional (RP) and its bidder JSW Steel-Aion Investments to provide written submissions on the resolution plan. The next hearing of the case will be on May 10.
The tribunal had, in its hearing last week, sought clarifications on the resolution plan. The bench had asked for clarity on the method followed for arriving at the liquidation value, payment of dues to unsecured financial creditors who have dissented, regulatory approvals required and the inclusion of certain assets of Monnet Ispat in the resolution plan. The liquidation value of the company has been pegged at Rs 2,365 crore.
Questioning the inclusion of the Gare Palma coal mine in Chhattisgarh as an asset of the company in the resolution plan, the bench asked, “The licence was cancelled by the government. How could you consider this as an asset of the company even after the NCLT order?”
In January, the Mumbai bench of the NCLT had dismissed a petition by Monnet Ispat’s resolution professional against the ministry of coal for issuing a termination notice of the Gare Palma mine. The government had issued the termination notice last December.
The total admitted dues of the financial creditors to Monnet Ispat stand at `11,000 crore, and those of the operational creditors at Rs 440 crore.