Status quo on Coastal Energen resolution challenged

economictimes.indiatimes.com:

Adani Power and Dickey Alternative Investment Trust approached the Supreme Court Wednesday, challenging the National Company Law Appellate Tribunal's (NCLAT) order asking the companies to maintain a status quo on implementation of the resolution plan for debt-laden Coastal Energen.

A bench, led by Chief Justice DY Chandrachud, posted the matter for hearing Thursday after Solicitor General Tushar Mehta and senior counsel Abhishek Manu Singhvi sought urgent hearing in the case.

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 Thoothukudi, Tamil Nadu, until September 18, the next date of hearing. Any money generated in this period would be kept in an escrow account, it ruled.

Challenging the NCLAT's order, the consortium told the SC that 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 having paid nearly ₹3,335 crore to stakeholders of the debt-laden company post approval of resolution plan by the NCLT, Chennai, on August 30.