Adani Power, Dickey Alternative challenge NCLAT's status quo order in Supreme Court
Dickey Alternative Investment Trust and Adani Power Ltd on Wednesday moved the Supreme Court challenging the National Company Law Appellate Tribunal's order asking it to maintain status quo on implementation of the consortium's resolution plan for debt-laden Coastal Energen.
A Bench led by Chief Justice DY Chandrachud posted the matter for hearing on Thursday after Solicitor General Tushar Mehta and senior counsel Abhishek Manu Singhvi sought urgent hearing in the case.
While observing that prima facie due process was not followed and members of the consortium should not be allowed to make any gains, the NCLAT on Friday directed that the erstwhile resolution professional would continue to run Coastal Energen's power plant in Thootukudi, Tamil Nadu, until September 18, the next date of hearing. And any money generated during this period would be kept in an escrow account, it held.
Challenging the NCLAT’s order, the consortium told the SC that the Friday’s order did not disclose any reason for “grant of such an extraordinary order,” although the appellate tribunal was informed about the successful resolution applicant (SRA) having paid approximately Rs 3,335 crore to the stakeholders of the debt-laden company post approval of its resolution plan by the NCLT, Chennai, on August 30. This was also brought to the notice of the NCLAT that the resolution plan has been implemented and the successful bidder was in possession of the Coastal Energen’s 1,200 MW thermal power plant in Tuticorin and was currently operating it.
