“An application for approval of a resolution plan was first filed on March 23 and was filed two days later. But since then we have only seen adjournments in the case four times so far. “said a person familiar with the matter. “Two motions for an urgent hearing, the most recent in the first week of this month, were denied, resulting in a daily loss to the financial system of ₹1 crore in terms of the net present value (NPV) of the resolution plan .”
Lenders have the option of filing an appeal with the NCLAT, but delays, even in higher court, have made bankers reluctant to take that step.
“The resolution professional had filed a request for an early hearing to protect and preserve the assets. However, the NCLT Ahmedabad bench of judicial member Deepti Mukesh and technical member Ajai Das Mehrota declined, citing an objection from a shareholder who required more hearings and adjourned the case to September 5,” said a second person familiar with the matter.
The said shareholder had opposed the decision, citing the suspension of the company’s shares before the case was admitted to NCLT, which had caused him financial loss.
“But the irony is that the court already heard from the shareholder in July and even then no order was issued. So we are going in circles,” said a second person quoted above.
