NCLAT Asks Three Chinese Firms To File Claims Before Liquidator Of Lanco Infratech
The National Company Law Appellate Tribunal on Wednesday declined to entertain pleas by three Chinese companies to direct the liquidator of Lanco Infratech Ltd. to stay invocation of their performance bank guarantees.
A two-member NCLAT bench headed by Chairperson Justice SJ Mukhopadhaya asked the three companies to approach the liquidator and file their claims if any amount has been received by Lanco Infratech after invocation of PBGs submitted by them.
"This Appellate Tribunal is not inclined to decide the claim and counter claim as made by the parties, but give liberty to the appellants to move before the appropriate forum for appropriate relief," the NCLAT said.
The companies are KSB Shanghai Pump Co, TLT-Tourbo (Sichuan) Co and Beijing Power Equipment Group Co.
"In all the cases the appellants have sought direction to Liquidator to restrain from invoking or encashing the Bank Guarantee. However, the Bank Guarantees were invoked," said NCLAT.
However, NCLAT said it is not clear as to whether the amounts have been realised by Lanco Infratech on invocation of PBG or not, which was to be released by the Bank of China.
"Therefore, the direction as sought for by appellants to direct not to pay any amount to the Corporate Debtor, cannot be ordered," said the appellate tribunal.
NCLAT said if Lanco Infratech has received the amount out of the PBGs, in such case "we are of the view that the appellants can file their respective claim before Liquidator who may decide the claim."
KSB Shanghai Pump Co had entered into a contract with Lanco for design, engineering, manufacture and assembly for 660 MW Supercritical Ennore Thermal Power Station expansion project and had submitted a PBG of $510,000.
The other two firms also got contracts for the same project.
According to them, PBG can be invoked only in accordance with its terms and conditions.
In August 2018, the Hyderabad bench of the National Company Law Tribunal had ordered liquidation of Lanco Infratech after a suitable buyer could not be found under the fixed timeline.