New Delhi: On Friday, March 8, the National Company Law Appellant Tribunal (NCLAT), upon the plea by the resolution professional of the debt-ridden company Amtek Auto, permitted the UK-based Liberty House to withdraw its bid for ARGL, a subsidiary of debt ridden auto components maker.
The matter was heard before a two-member bench headed by Justice S J Mukhopadhaya, who raised objection on Liberty House for not pursuing the corporate insolvency resolution process and further submitting a bank guarantee after emerging as the highest bidder.
The resolution professional had moved the NCLT to cancel the bid. Subsequently, the plea was allowed by the NCLT.
Moreover, considering the Liberty House of taking matters lightly and on account of their callous approach, the Chandigarh bench of the NCLT imposed a cost of Rs 1 lakh. This order was further upheld by the NCLAT.
Under the Insolvency and Bankruptcy Code (IBC), a resolution process has to be completed under 180 days with a further extension of 90 days to 270 days.
During the hearing, the Court directed for deduction of time period between December 14, 2018 to March 8, 2019 from the resolution process, thus, reducing the days in hand for completion of the process.
Meanwhile, NCLAT clarified that its order would not debate Liberty House from participating in other resolution processes. “Any observations against Liberty should not construed as finding against them ineligible from participating in any other resolution process,” stated the bench.