NCLT dismisses BEST's bid to be classified as secured creditor in Spark Green Energy insolvency
bankruptcy court has rejected Brihanmumbai Electric Supply and Transport (BEST) Undertaking’s application to direct the liquidator of Spark Green Energy (Satara) Ltd to categorise it as a secured financial creditor and also admit its claim of Rs 156 crore.
The city-based public utility undertaking had approached the Mumbai bench of the National Company Law Tribunal (NCLT) after the liquidator of Spark Green Energy (Satara) rejected the company’s claim to admit the amount.
“The respondent (liquidator) was fully justified in categorizing the appellant as an unsecured financial creditor, given that the charge was not registered with the registrar of companies,” said the division bench of Kuldip Kumar Kareer and a technical member Anil Raj Chellan in its order of October 25. “Therefore, no fault can be found with the impugned order passed by the respondent. Consequently, we reject the appellant's prayer to be considered and classified as a secured financial creditor of the corporate debtor.”
In this case, the BEST Undertaking, to meet its renewable purchase obligation had issued an Expression of Interest (EOI) for the supply of 300 million units per annum in 2007. At the inception, the cost of the project was estimated at Rs 110 crore which was to be funded by the promoters by way of equity to the extent of Rs 15 crore, Rs 30 crore by the appellant by way of interest-free security deposit and the balance of Rs 65 crore by financial lenders by way of project loans.
Last year in July, the company was admitted for
