In the Corporate Insolvency Case Between Monnet Power & BHEL, NCLAT Dismisses Plea Challenging the Order of the NCLT



In the Corporate Insolvency Case Between Monnet Power & BHEL, NCLAT Dismisses Plea Challenging the Order of the NCLT

New Delhi: On Tuesday, February 26, the NCLAT dismissed a plea initiated by the Resolution Professional (RP) of debt-ridden Monnet Power Company against a recent NCLT order dated October 12, 2018.

The matter was heard before a two-member NCLAT bench headed by Justice S J Mukhopadhaya, who directed the RP to act in accordance to the NCLT orders and re-examine the claims of its operational creditor, State-owned BHEL. The Appellate Tribunal was of the opinion that it did not wish to interfere with the order passed by the adjudicating authority and thereby rejected the plea.

The corporate insolvency matter pertains BHEL, seeking acceptance from the RP of Monnet Power Company of its claim of Rs. 977.49 crores along with interest. However, Navneet Kumar Gupta, being the RP disregarded the plea and denied all claims therein. Thereafter, BHEL moved the NCLT.

During the hearing last year, the NCLT Mumbai bench ordered observed that Monnet Power had unreasonably and wrongfully disallowed the substantial claims by Bharat Heavy Electricals Ltd (BHEL). Hence, the Tribunal instructed the RP to thoroughly inspect its accounts to determine the substantial claim and also examine the evidence of PSU. Moreover, the order stated that in case the evidence corroborates the claim, the same should we considered while determining the total claim by the State-run operational unit.

Besides being a debtor to BHEL, the Power Company is estimated to have a debt amounting to nearly Rs. 6,000 crores that it owes to a consortium of lenders including State Bank of India, Punjab National Bank and many others.

 

Bharat Heavy Electricals Ltd (BHEL)
Monnet Power Company
National Company Law Tribunal (NCLT)
Punjab National Bank
Resolution Professional (RP)
State Bank of India

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