NCLAT Directs Marg Promoter GRK Reddy To Submit Revised Resolution Plan By Sept. 12
A man holds two thousand and five hundred Indian rupee banknotes in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg) 

NCLAT Directs Marg Promoter GRK Reddy To Submit Revised Resolution Plan By Sept. 12

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The National Company Law Appellate Tribunal directed GRK Reddy, the promoter of Chennai-based infrastructure developer Marg Ltd., to submit a revised resolution plan to creditors by Sept. 12 to bring the company out of insolvency proceedings.

A three-member NCLAT bench headed by Chairperson Justice SJ Mukhopadhaya said it would not grant any further time and failing to which it would proceed ahead in the insolvency matter.

The NCLAT also directed the Committee of Creditors to consider and decide over the revised resolution plan by Sept. 26.

The appellate tribunal also said the CoC would ensure that "no discrimination is made between equally situated financial creditors, operational creditors and creditors" of the company.

"If no revised proposal equating all the financial creditors and operational creditors is submitted by Sept. 12, this appellate tribunal will not allow further time to the appellant (GRK Reddy) and will proceed in the matter on merit," the bench said.

The NCLAT has also asked the resolution professional of Marg to file a status report of the company by Sept. 27.

It has directed to post the matter on Sept. 30.

During the proceedings, the NCLAT was informed that a new revised resolution plan under Section 12A of IBC is under consideration before the CoC.

Section 12A of the Insolvency and Bankruptcy Code allows corporate debtor to settle its defaults and get the company out of insolvency proceedings after settling the claims of lenders after getting 90 percent votes of the CoC.

Earlier, the Chennai-bench of the National Company Law Tribunal had allowed the insolvency plea filed by leading private sector lender ICICI in May this year, which has been challenged by the promoter before the NCLAT.

During the last hearing of the NCLAT on Aug. 7 counsel appearing on behalf of ICICI Bank had submitted that settlement though reached, but amount is yet to be paid by the promoters.

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