April 18, 2021 2:42:30 am
The NCLAT has dismissed the petition by Deccan Value Investors challenging the NCLT approval to its resolution plan for debt-ridden Amtek Auto without execution of a lease of a property.
A three-member National Company Law Appellate Tribunal (NCLAT) Bench also imposed a cost of Rs 1 lakh on the US-based hedge fund Deccan Value Investors (DVI) LLP, terming the petition as “frivolous”.
It further said execution of the long term lease (20 years) of the Ace Complex Land was not a condition precedent in regard to approval of resolution plan.
“The appeal not only lacks merit but also is frivolous. We, while dismissing the appeal, impose costs to the tune of Rs one lakh on the Appellant (DVI) which shall be deposited in this Appellate Tribunal within 15 days,” said NCLAT Bench headed by Acting Chairperson Justice B L Bhat.
Earlier, the Chandigarh Bench of the National Company Law Tribunal (NCLT) had on July 9, last year, approved the resolution plan submitted by DVI for Amtek Auto Ltd.
While approving, the NCLT in its order rendered the precondition by DVI LLP for a long term lease (20 years) of the Ace Complex Land as infructuous.
This was challenged by DVI LLP before the appellate tribunal contending that while approving its resolution plan, the NCLT had gone beyond its jurisdiction in concluding that the requirement of the prior written consent of the mortgagee of the Ace Complex Ltd as provided in the resolution plan.
With PTI inputs
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