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NCLAT Directs Liberty House to Deposit INR 380 Crore for Adhunik Metaliks and Zion Steel

Steel News - Published on Thu, 23 Jan 2020

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The National Company Law Appellate Tribunal has asked the UK-based Liberty House to deposit, by February 14, a sum of INR 380 crore, as per its resolution plan for Adhunik Metaliks and group firm Zion Steel. The two-member NCLAT bench, headed by Justice SJ Mukhopadhaya, has also asked Liberty House to deposit the amount in the account of State Bank of India, the lead bank. The bench said “Once the total amount is deposited, this appellate tribunal will consider the rest of the proposal as made in paragraph 7 (of the revised affidavit of Liberty House) and will pass order.”

NCLAT has also been asked to pay costs incurred in the corporate insolvency resolution process and make payments to operational creditors.

The NCLAT has scheduled the matter on February 17 for orders.

On January 7, the NCLAT bench gave Liberty House time till January 9 to submit an affidavit giving therein its unconditional and unqualified proposal showing time-frame for implementation of the plan. Liberty House, accordingly, submitted the affidavit within the schedule. However, while hearing the matter, the bench found some incongruity in the affidavit and asked Liberty House to file a revised affidavit by January 20, outlining specific time-frame and other details of its resolution plan. In the revised affidavit, Liberty House said it will, deposit, INR 360 crore (INR 410 crore less INR 50 crore already deposited) for Adhunik and INR 10 crore (INR 15 crore less INR 5 crore already deposited) for Zion, as full and final settlement towards all financial creditors (lenders) as per the resolution plan, within three weeks of NCLAT order, in a bank account specified by and under supervision of NCLAT.”

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Posted By : Rabi Wangkhem on Thu, 23 Jan 2020
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