KSK Mahanadi Power Company, represented by its Resolution Professional (RP), addressed the National Company Law Tribunal (NCLT) in Hyderabad, advocating for a renewed bidding process under the corporate insolvency resolution process (CIRP). The company, admitted into insolvency in October 2019, contends that recent developments necessitate a fresh invitation for bids.
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The RP emphasized that KSK Mahanadi’s evolving status as a separate entity under CIRP warrants a reevaluation of bidding prospects. Despite objections from Megha Engineering & Infrastructures Limited, one of the prospective resolution applicants (PRAs), the RP asserted that both the Committee of Creditors (CoC) and the majority of PRAs support the decision for fresh bidding.
Previously, the NCLT lifted a stay on KSK Mahanadi’s CIRP, permitting standalone bidding following the CoC’s preference. However, Megha Engineering’s counsel challenged the RP’s rationale for the new bidding round, citing the absence of explicit tribunal authorization. Notably, key players like Adani Power, Jindal Power, and Vedanta Ltd had participated in the initial bidding phase.
The tribunal underlined its limited role in reviewing CoC decisions, intervening only if they exhibit capriciousness or arbitrariness, indicating a deference to the CoC’s discretion in this matter.
