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The counsel representing the successful resolution applicant for the insolvent Srei group companies, National Asset Reconstruction Company (NARCL), on Monday said the company had not been given any relaxation and had fully complied with the norms laid down in the evaluation matrix.
The counsel further argued that there was no doubt or uncertainty regarding the recovery from underlying assets and subsequent repayment to creditors.
The matter has been posted for further hearing on June 5. The Kolkata Bench of NCLT will also hear the arguments to be presented by the counsel appearing on behalf of the consolidated Committee of Creditors (CoC) on June 5.
It is to be noted that Authum Investment and Infrastructure, whose financial bid was adjudged the second-highest in terms of NPV, had filed a petition before the Kolkata Bench of NCLT raising questions over the evaluation matrix. The counsel appearing on behalf of Authum had recently argued about the evaluation matrix that gave NARCL a higher score in the bid submitted for the Srei group companies.
However, the counsel for NARCL said that no such relaxation was made and that it had complied with the requirements laid down as per the challenge mechanism.
No uncertainty in recovery
In an earlier hearing, the counsel — appearing on behalf of debenture shareholders — had said that there was no certainty of recovery from the underlying assets of the corporate debtor and hence the repayment to creditors could be impacted.
The counsel had further argued that as per the final resolution plan submitted by NARCL, the security receipts to be issued to the creditors would be by way of redemption of secured non-convertible debentures and there is no guarantee whatsoever that it could be redeemed at the expected price.
According to the final resolution plan submitted by NARCL, the security receipts worth around ₹1,800 crore from the recovery of underlying assets of corporate debtor, which in this case is basically the loans given to borrowers, would be issued to creditors.
Citing the example of DHFL, Ravindra Kadam, a senior advocate appearing on behalf of NARCL, argued that the financial creditors were being repaid by committed secured instruments within a fixed schedule and this (issuing security receipts by way of redemption of secured non-convertible debentures) was an accepted practice in case of NBFCs.
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