The National Company Law Appellate Tribunal (NCLAT) has rejected Jindal Power Limited’s appeal against the Mumbai National Company Law Tribunal (NCLT) ruling, prohibiting the company from presenting a resolution plan in the Tuticorin Coal Terminal’s insolvency proceedings. Dismissing the appeal, NCLAT emphasized the absence of merits and highlighted that granting it would contravene Corporate Insolvency Resolution Process (CIRP) regulations.
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Jindal Power sought inclusion as an applicant for acquiring insolvent Tuticorin Coal Terminal Pvt Ltd. The NCLT had permitted Jindal Power’s participation in the resolution process conditional upon its name being listed in the final Prospective Resolution Applicants (PRA) roster prepared by the Committee of Creditors (CoC).
In its argument, Jindal Power pointed to the allowance of another company, Seapol, to submit a resolution plan despite not being on the CoC’s final PRA list. The NCLAT, however, noted that granting Jindal Power the same right would necessitate similar considerations for other entities interested in assuming control of the insolvent company. Tuticorin Coal Terminal entered insolvency proceedings in February 2020.
