New Delhi: The Supreme Court of India has stayed the National Company Law Appellate Tribunal (NCLAT) order that last week handed the operation of a 1200 MW coal-based power plant in Toothukudi, Tamil Nadu, to the Resolution Professional, saying that the NCLAT order suffered from internal inconsistency.
Apex court set aside NCLAT order
The Supreme Court on Thursday set aside the NCLAT order and has now allowed the Dickey Alternative Investment Trust (DAIT) and Adani Power consortium to operate the plant, which they had taken over by paying Rs 3, 3352 Cr rupees.
What did DIAT submit?
During the hearing on Thursday morning, senior advocates Mukul Rohatgi and Abhishek Manu Singhvi, appearing for DIAT, submitted before the court that DIAT and Adani power Consortium had taken over the plant on last week and were running it, but in a case challenging the take over of the power plant, the NCLAT had passed an order that gave back the operation of the plant to the Resolution Professional.
Rohatgi told the court that this cannot happen after DIAT had paid Rs 3335 cr to 16 creditors and the plan of take over has been approved by 97 per cent of he committee of creditors.
Rohatgi also pressed that NCLAT order amounted to restoring status quo ante on the plant functioning.
Former director of Coastal Energen took objection to stay of NCLAT order
Simultaneously, senior advocates Kapil Sibal and Aryaman Sundaram appearing for one Ahmed Buhari, who is a former director of Coastal Energen, took objection to the stay of NCLAT order.
Ahmed Buhari has move a petition before the NCLAT challenging the take over of distressed Coastal Energen run power plant by DIAT saying that it was just a front for Adani power and was illegitimate.
The Supreme court on Thursday not just allowed DIAT consortium to run the plant but has also restrained it from dismantling the plant and creating third party interests in the power plant or alienate the plant.
The Supreme Court on Thursday set aside the NCLAT order and has now allowed the Dickey Alternative Investment Trust (DAIT) and Adani Power consortium to operate the plant, which they had taken over by paying Rs 3, 3352 Cr rupees. Business Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
