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NCLAT asks if Liberty House is willing to go ahead with resolution plan for Amtek Auto

The NCLAT has also asked the Committee of Creditors if it has a higher bid for Amtek Auto other than that of Liberty House or not

twitter-logo PTI        Last Updated: January 8, 2019  | 08:28 IST
NCLAT asks if Liberty House is willing to go ahead with resolution plan for Amtek Auto

The National Company Law Appellate Tribunal (NCLAT) has asked if UK-based Liberty House is willing to go ahead with its resolution plan for the debt-ridden Amtek Auto in which it has emerged as the highest bidder.

The appellate tribunal has also asked the Committee of Creditors (CoC) if it has a higher bid for Amtek Auto other than that of Liberty House or not.

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A two member bench of the appellate tribunal headed by Justice S J Mukhopadhaya has asked the counsel of the respective parties to take instruction from the client and inform the bench.

The NCLAT has issued a notice to the CoC, resolution professional (RP) of Amtek Auto and directed to list the matter on January 22 for the next hearing.

The appellate tribunal was hearing a petition filed by Liberty House.

During the proceedings, senior advocate A S Chandiok representing Liberty House said that once the CoC recommends the adjudicating (NCLT) after selecting the highest bidder, it does not have the power to call it back.

"If somebody wants to give more money, then we are ready to look at it. They should tell us the new amount, which they are getting," said Chandiok.

In March last year, Liberty House, part of Sanjeev Gupta's global industrial group GFG Alliance, said it emerged as the successful highest bidder for Amtek Auto.

Following which, RP of Amtek Auto-submitted resolution plan as approved by CoC to the Adjudicating Authority (NCLT) for approval under section 30 of Insolvency & Bankruptcy Code.

However, Liberty House made no payments despite repeated requests from the RP to do so, the lenders said.

It has also not submitted a bank guarantee of Rs 100 crore to lenders, following which they filed an application before NCLT to cancel the approval as it failed to pay.

The CoC had also sought to bar Liberty House from bidding for an insolvent company.

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