Solicitor General says he was given a wrong impression that there were 3 resolution plans, when there was 1 bid.
The Supreme Court on Friday decided to recall its September order on December 2 after the committee of creditors (CoC) of debt-laden Amtek Auto informed the court that there was only one bid for the insolvent company and not three, as was claimed earlier.
Solicitor General Tushar Mehta, appearing for the CoC, told a Bench led by Justice Arun Mishra that he was given a wrong impression that “there are three resolution plans, but in fact there was only one bid”. Keeping in view the three resolution plans, the September-24 order had allowed resolution professional and lenders to invite fresh bids for the insolvent company within 21 days, he said.
However, the Bench on Friday expressed concern on how the counsel is not briefed properly. It observed: “we cannot modify our order. It will have to be a total recall. Someone want to get backdoor entry is not right,” Justice Mishra said, adding,“this is something we never expected”.
The apex court had in September allowed resolution professional and lenders to invite fresh bids and decide on final resolution plan within two weeks thereafter. This order had saved the largest auto components manufacturer from liquidation after no resolution was found within the 270-day deadline as UK-based Liberty House, the successful bidder, backed out citing technical reasons.
A three-judge Bench, led by Justice Mishra, had then ordered that the final decision on the resolution plan would be placed before it as the deadline for resolution expired on November 15.
The apex court had on September 6 stayed the NCLAT decision ordering liquidation of the debt-ridden firm. Amtek featured on the first list of 12 companies that were referred by the RBI for initiating insolvency process in 2017.
Mehta, appearing for the banks, had during the hearing requested the Bench to extend the time for resolution and allow the CoC to invite fresh bids. He submitted this is the time when the automobile sector is going through a recession, and sending Amtek Auto to liquidation will not serve anyone’s purpose. Amtek Auto has a liability of around Rs 11,500 crore.