The appeal filed by serial entrepreneur C Sivasankaran, promoter of Siva Industries, in the National Company Law Appellate Tribunal (NCLAT), Chennai, against the recent order of the National Company Law Tribunal (NCLT) Chennai, on the company’s liquidation could not be heard on Monday as the Technical Member recused himself from the case.

On Monday, the Court of Justice M Venugopal, Member (Judicial) and Kanthi Narahari, Member (Technical), was to hear the case of RCK Vallal (appellant), promoter of Siva Industries and father of Sivasankaran, versus Siva Industries (in liquidation and the first respondent) through its liquidator Ayyampalayam Venkatesan Arun and Abhijit Guhathakurta (second respondent), Ex Resolution Professional of Siva Industries.

However, in view of the recusal of Kanthi Narahari, Member (Technical), the ‘Office of the Registry’ is directed to list the matter before the appropriate Bench, in which he is not a Member after obtaining necessary Administrative Orders from the Officiating Chairperson of Principal Bench, NCLAT, New Delhi, says an order issued by Venugopal.

No date has been fixed for the next hearing in the matter, said sources.

The NCLT ordered liquidation of Siva Industries and rejected lenders’ proposal to withdraw the company from bankruptcy proceedings. It had also rejected the application filed by Resolution Professional of Siva Industries.

The promoters of Siva Industries had proposed to pay ₹328.21 crore to IDBI Bank-led consortium of lenders as a one-time settlement plan to withdraw the company from proceedings under the IBC at NCLT. Siva Industries’ debt is about ₹4,863 crore and the settlement plan amounted to a haircut of about 93.5 per cent for banks. Under the offer, which was approved by the lenders in early April, the promoters would pay only ₹5 crore upfront and the balance within 180 days of approval.

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