Home Insolvency & Bankruptcy Punj Lloyd liquidation period extended till 30 June 2024

Punj Lloyd liquidation period extended till 30 June 2024

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Punj Lloyd liquidation period extended till 30 June 2024

EPC firm Punj Lloyd on twenty sixth January 2024 stated that that the Nationwide Firm Regulation Tribunal (NCLT) has granted an extra extension of time till June 30, 2024, for the completion of its liquidation course of.

The counsel of the liquidator — Ashwini Mehra – had argued within the tribunal that contemplating the truth that liquidation as a going concern couldn’t be accomplished, if the time interval is prolonged for a interval of 6 months.

The counsel additional argued that except the time interval for liquidation of the Company Debtor is prolonged, the identical will expire on 31 December 2023, and will result in the extreme penalties and avoidable loss, hurt and harm to the Company Debtor and all its stakeholders, together with however not restricted to its collectors and round 1000 workers. Punj Lloyd is presently operating as many as 16 Engineering Procurement and Building (EPC) and defence tasks throughout numerous areas in India in addition to overseas.

The counsel knowledgeable the tribunal that the Stakeholders’ Session Committee (SCC) of Punj Lloyd has additionally permitted the extension of the liquidation interval by six months, and licensed the liquidator to maneuver the current utility below Part 44(2) of the Liquidation Laws in its eleventh assembly, which held on 14 December 2023.

Punj Lloyd was pushed to insolvency after ICICI Financial institution dragged it to NCLT in March 2018 for failing to pay Rs 854 crore. The NCLT admitted ICICI Financial institution’s insolvency petition towards the corporate, and thus started the lengthy means of decision, which is but to recover from. The corporate owed Rs 13,386 crore to over 1097 collectors together with each monetary and operational collectors.

A closing decision plan was submitted by a consortium of Payard Investments Non-public Ltd and Prudent ARC Ltd. Nevertheless, the Committee of Collectors rejected the decision by a vote share of 79.53%.

The Committee of Collectors in March 2021 determined to promote Punj Lloyd as going concern below the liquidation course of. The decision skilled Ashwini Mehra prayed the Delhi bench of NCLT to move an order to liquidate the corporate as going concern as a result of Punj Lloyd had over 3,000 workers and several other ongoing EPC tasks.

The NCLT allowed the request of the decision skilled and ordered liquidation of the corporate as a going concern in July 2022. Ashwini Mehra was appointed the liquidator. Ever because the liquidator of the corporate has been making an attempt to promote it as going concern.  Below the liquidation course of, the stakeholders submitted claims of Rs 17,212 crore.

After a number of extensions for the final date for submitting EoI, each Adani Infra and Vedanta Ltd submitted their bids in October 2022. The 2 bidders needed to revise their bids in December 2022 after the Stakeholders Session Committee (SCC) discovered each the bidders treating the going concern sale course of.

Additionally See: 2nd spherical of e-auction on the market of Punj Lloyd as going concern on 28 Aug

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