Jindal Power seeks NCLAT nod to submit fresh resolution plan for Tuticorin Coal Terminal
- In 2020, Bank of India had initiated insolvency proceedings against Tuticorin Coal Terminal due to unpaid dues amounting to ₹90.87 crore
New Delhi: Naveen Jindal-promoted Jindal Power Ltd. has approached the National Company Law Appellate Tribunal (NCLAT) seeking permission to submit a fresh resolution plan for the bankrupt Tuticorin Coal Terminal Pvt. Ltd.
This comes after the company's earlier proposal was refused submission by the Mumbai bench of the National Company Law Tribunal (NCLT) in August, citing absence from the final Prospective Resolution Applicant (PRA) list issued in 2020.
In response to the plea, the NCLAT has sought an affidavit from the resolution professional (RP) Dhiren Shantilal Shah.
Jindal Power had filed a case against Shah after the NCLT rejection.
During the hearing, Jindal Power argued that circumstances have changed since the 2020 PRA list was created during the pandemic. They cited the case of Seapol Port Private Ltd., which was not on the 2020 PRA list but was allowed by the NCLT to participate. Jindal Power emphasized the importance of a level-playing field for all interested parties.
The resolution professional clarified that the initial list of interested parties in the PRA comprised six parties, but none of their proposed resolution plans were taken into consideration. This led to the RP's request for liquidation. However, the plea for liquidation was subsequently withdrawn when Seapol expressed interest in submitting a resolution plan, which was later approved by the NCLT. Additionally, the RP mentioned another company called Seahawk, although they had not yet submitted a resolution plan. The court will hear this case next in the first week of October.
In 2020, Bank of India had initiated insolvency proceedings against Tuticorin Coal Terminal due to unpaid dues amounting to ₹90.87 crore. The terminal, situated within the government-owned V O Chidambaranar Port Trust (VOCPT) in Thoothukudi, Tamil Nadu, had ceased operations in 2018 and was abandoned. The terminal, with a capacity of 7 million tonne, was established and operated through an Indo-French joint venture. ALBA Asia held a majority stake of 74%, while the French shipping group Louis Dreyfus Armateurs SAS (LDS) held a 26% stake. In total, the terminal owed ₹355.79 crore to seven banks, with Bank of India being the principal creditor in the group.
It is believed that the financial viability of the Tuticorin Coal Terminal was compromised by the high revenue percentage (around 52.7%) agreed upon for sharing with the VOC Port Trust. This marked the first instance in the ports sector of a public-private partnership (PPP) went into liquidation process after the rejection of expressions of interest (EoIs) from companies like Felguera Gruas India and V K S Mining Services during the Corporate Insolvency Resolution Process (CIRP), citing valuation concerns.
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First Published:21 Sep 2023, 06:15 PM IST
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