Swan Energy directed to pay ₹250 cr

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₹250 crore upfront before seeking any further extension to complete the corporate insolvency resolution process. A bench led by Justice Chitra Hankare held that “From the application, it appears that the applicant is ready to pay the amount in compliance of earlier order. Reliance Naval has submitted that the said amount is also not paid, and the amount is not given as per schedule.

Before considering the application for an extension of time, Swan is directed to comply with the amount proposed in the resolution plan". On 1 August, the tribunal granted Swan Energy a second extension of 45 days (about one and a half months), which ended on 14 September. This was the third extension that the resolution applicant sought from the tribunal.

The matter will be taken up for further hearing on 22 November. After repeatedly failing to arrange funds for the upfront payment, Swan, in its application, requested an extension of the timeline to complete the resolution process. Swan Energy, along with Hazel Mercantile (consortium) emerged as the successful resolution applicant for the cash-strapped firm.

Swan submitted a bid of ₹2,133 crore duly approved by the NCLT in December 2022. In accordance with the resolution plan, Swan was to make an upfront payment of ₹293 crore to the lenders of Reliance Naval by 23 March. Swan, however, got a further extension till 23 July.