The Dickey Alternative Investment Trust and Adani Power consortium moved the Supreme Court on Wednesday, challenging the National Company Law Appellate Tribunal’s (NCLAT) recent directive to maintain the status quo in the Corporate Insolvency Resolution Process (CIRP) of Coastal Energen Private Limited.
The NCLAT, Chennai, issued the status quo order on September 6, in response to an appeal filed against the National Company Law Tribunal’s (NCLT) approval of a ₹3,335 crore resolution plan. The plan, submitted by the Dickey Alternative Investment Trust and Adani Power consortium, aimed to revive Coastal Energen, a Tuticorin-based power plant operator.
The appellate tribunal, consisting of Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain, directed the resolution professional, Radhakrishnan Dharmarajan, to continue operating the Coastal Energen plant while maintaining the resolution amount in a separate account until the case is resolved on its merits.
The consortium had already implemented the resolution plan and assumed control of Coastal Energen following the NCLT’s approval last month. Under the plan, secured lenders of Coastal Energen were to receive approximately ₹3,330 crore, amounting to 28.52% of the admitted claims totaling around ₹11,677 crore.
The urgency of the appeal before the Supreme Court was underscored by Solicitor General Tushar Mehta and senior counsel AM Singhvi, who mentioned the matter for an immediate hearing before a bench led by Chief Justice DY Chandrachud. The Chief Justice has scheduled the hearing for tomorrow, emphasizing the high stakes involved.
The NCLAT has posted the next hearing for September 18, 2024, leaving the consortium’s future involvement in Coastal Energen hanging in the balance. The appeal against the NCLT’s nod was initiated by Ahmed Buhari, the former director of Coastal Energen, who alleged procedural lapses in selecting the consortium as the successful bidder under the insolvency and bankruptcy process. Coastal Energen was admitted for CIRP by the NCLT in February 2022, following a case filed by the State Bank of India.
