NCLT asks Monnet’s RP to consider Bhel’s entire claim
Bhel had moved the Mumbai bench of the NCLT against the RP to include its full claim of ₹977 crore under the category of operational creditors
Mumbai: In a relief to Bharat Heavy Electricals Ltd (Bhel), the dedicated bankruptcy court has directed the resolution professional (RP) of Monnet Power Co. Ltd to consider the entire financial claim of state-owned power equipment manufacturing firm.
Bhel had moved the Mumbai bench of the National Company Law Tribunal (NCLT) against the RP to include its full claim of ₹977 crore under the category of operational creditors. Currently, the RP has admitted only one-third or ₹359 crore worth of claims.
“We are a government body and we have borrowed over ₹4,500 crore to complete various projects, including a few owned by Monnet Power,” argued M.P. Rao, the counsel representing Bhel. “We want the resolution professional to include holding charge and interest component as well in the claim. Ours was an engineering contract and, hence, the interest is applicable as per the applicable laws under the Negotiable Instrument Act and Civil Procedure Code (CPC), among others.”
The Mumbai-bench of the NCLT presided by M.K. Shrawat on Wednesday also allowed an additional 90 days to complete the resolution process for Monnet Power, which owes around ₹6,000 crore to a consortium of lenders, including SBI and PNB.