NCLAT Upholds Fund Distribution in OCL Iron and Steel Insolvency Case
The NCLAT has rejected an appeal by five banks challenging a fund distribution related to OCL Iron and Steel's insolvency resolution. The tribunal affirmed the distribution approved by lenders and the NCLT as lawful. The case pertains to the allocation of funds from Indrani Patnaik's successful resolution plan.
- Country:
- India
The National Company Law Appellate Tribunal (NCLAT) has quashed a joint petition filed by five banks, namely Indian Bank, UCO Bank, Bank of Baroda, ICICI Bank, and Union Bank of India. This appeal challenged the fund distribution to dissenting financial creditors, specifically the State Bank of India (SBI) and Punjab National Bank.
A bench comprising Chairperson Justice Ashok Bhushan and Member (Technical) Indevar Pandey declared the distribution mechanism as valid and binding. The funds distribution stemmed from the resolution plan of the lenders' Committee of Creditors, subsequently approved by the National Company Law Tribunal (NCLT) in its commercial wisdom.
The case is related to the insolvency proceedings of OCL Iron and Steel, with controversy surrounding the implementation of the resolution plan submitted by Indrani Patnaik. The NCLAT's ruling supports the original computations for fund allocation and mandates adhering to the previously established liquidation values.
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