After granting an extension of 45 days for the second time, the National Company Law Tribunal directed Swan Energy to pay Rs250 crore before seeking any further extension to finish the corporate insolvency resolution process. Reportedly, a bench of the National Company Law Tribunal in Ahmedabad said to pay Rs 250 crore to Swan Energy which is the successful resolution applicant of debt-Iaden Reliance Naval and Engineering. Earlier, Swan Energy sought an extension two times. In August 2023, the NCLT granted an extension of 45 days to Swan Energy but when the debt-laden Reliance Naval and Engineering said the amount had not been paid yet by Swan Energy, the NCLT said before seeking any further extension to pay Rs 250 crore upfront to complete the corporate insolvency resolution process. Shift to the next section and read more details.
A bench of the National Company Law Tribunal in Ahmedabad led by Justice Chitra Hankare said debt-laden Reliance Naval and Engineering claimed that the amount has not been paid by Swan Energy and the last date as per the schedule has gone. Meanwhile, Justice Chitra Hankare directed Swan Energy to pay the amount proposed in the resolution plan before seeking an extension of time.
The bench led by Justice Chitra Hankare said, “From the application, it appears that the applicant is ready to pay the amount in compliance with the earlier order. Reliance Naval has submitted that the said amount is also not paid, and the amount is not given as per schedule. Before considering the application for an extension of time, Swan is directed to comply with the amount proposed in the resolution plan”. As mentioned, the National Company Law Tribunal granted Swan Energy for the second time on August 1, 2023. The tribunal allowed 45 days to Swan Energy, which ended on September 14.
So far, the resolution application, Swan Energy has sought three extensions from the tribunal. But this time the tribunal asked the resolution applicant to pay Rs 250 crore. However, Swan Energy has failed multiple times to arrange funds for the upfront payment. Therefore, Swan requested an extension to complete the resolution process in its application. The further hearing in this matter will take place on November 22, 2023. Swan Energy and Hazel Mercantile emerged as the successful resolution applicants for the cash-strapped firm. Last year in December, Swan Energy submitted a bid of Rs2,133 crore duly approved by the NCLT.