Supreme Court allows Adani-Dickey consortium to continue operating Coastal Energen power plant
Adani Power and Dickey Alternative Investment Trust to continue to operate Coastal Energen's 1,200 MW-thermal power plant till the National Company Law Appellate Tribunal (NCLAT) decided various appeals against the approval granted to the resolution plan for the debt-laden firm.
However, the apex court said that the Adani-Dickey consortium, the successful resolution applicant (SRA), would not dismantle the Coastal Energen’s power plant in Tuticorin, Tamil Nadu, or create any third party rights or create any financial obligations except in the ordinary course of business.
The Bench led by Chief Justice D.Y. Chandrachud said that “prima facie, we are of the view that the September 6 order (of NCLAT) suffers from internal inconsistency. The first part indicates status quo ante has to be restored and the second part shows status quo has to be maintained as on date.”
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 had on Friday (Sep 6) directed that the erstwhile resolution professional would continue to run Coastal Energen's power plant till September 18, the next date of hearing.
The apex court noted the arguments of the parties that the NCLAT would hear the challenge by Ahmed Burari, the suspended director of Coastal Energen, and Precious Energy Holdings and Mutiara Energy Holdings, the two shareholders of the company on September 18. They had challenged the NCLT’s approval given to Dickey Alternative and Adani Power's
