NE BUSINESS BUREAU
NEW DELHI, AUG 27
The NCLAT on Thursday dismissed a plea by promoters of Chennai-based Empee Distilleries challenging the NCLT’s rejection of their Rs 513 crore settlement offer in favour of a Rs 475 crore resolution plan by SNJ Distilleries.
Upholding the order passed by the Chennai-bench of the NCLT, a three-member bench of the National Company Law Appellate Tribunal (NCLAT) said SNJ Distilleries’ bid was cleared by the Committee of Creditors (CoC) after finding it “viable, feasible and acceptable”.
Passing an order on January 20, 2020, the National Company Law Tribunal (NCLT) dismissed the settlement plan filed by the promoters and approved the resolution plan submitted by SNJ Distilleries.
“We find that the impugned order does not suffer from any legal infirmity. The appeal lacks merit and the same is dismissed,” said the NCLAT bench headed by Acting Chairperson Justice B L Bhat.
The appellate tribunal also dismissed the promoters’ allegations that their settlement plan was arbitrarily rejected by the CoC.
“What primarily appears to have weighed with the CoC in discarding the Settlement Plan of Promoter is its structural layout….,” it said.
There was also ambiguity in regard to raising of funds as well as specific schedule of payment to various stakeholders, it added.
The NCLAT’s direction came on a petition filed by Shaji Purushothaman, promoter/director of Empee Distilleries, challenging the NCLT order approving the resolution plan of SNJ Distilleries.
The NCLT had on November 1, 2018 directed insolvency proceedings against Empee Distilleries over a plea filed by its financial creditor Union Bank of India.
The promoters had submitted a settlement plan to Union Bank of India on November 30, 2019.
