NCLAT admits SBI plea against Lavasa Resolution
NCLAT) allowing a State Bank of India (SBI) petition seeking to set aside a lower court's approval for the resolution plan submitted by Darwin Platform Infrastructure (DPIL).
This is the second bank objection to the loan default resolution of Lavasa Corporation, billed as the first private hill town project to be built since Independence. It comes almost two years after creditors approved the plan overwhelmingly in December 2021 and months after the NCLT gave its nod in July this year.
In its application, the SBI had sought to set aside the NCLT order and contended that DPIL did not adhere to the waterfall mechanism of the Insolvency and Bankruptcy Code (IBC) which does not treat government dues as secured creditors.
Former attorney general of India KK Venugopal represented the SBI, seeking condonation of delay in filing the appeal.
The SBI did not reply to ET's emailed queries regarding the development.
In its July order, the NCLT had relied on the Supreme Court's ruling in the Rainbow Papers case, which gave state tax authorities parity with secured financial creditors, contrary to the IBC waterfall mechanism. Late last month, the apex court also dismissed review petitions challenging its Rainbow Papers order.
In a short order earlier this week the NCLAT gave the SBI and DPIL two weeks to file a reply.
The case will now be heard on January 10, 2024.
Responding to a query by ET, DPIL said SBI's petition was a delaying tactic rather than a legitimate concern.
«SBI's legal action lacks jurisdiction and raises questions about the sincerity of their motives. SBI's withdrawal petition raises doubts about the transparency and fairness of the resolution proceedings, creating unnecessary hurdles in the timely resolution
