Kolkata bench of NCLT gives 60-day extension to Srei administrator for completing CIRP process

The Kolkata bench of National Company Law Tribunal has granted time extension of 60 days to the administrator of the Srei group companies — Srei Infrastructure Finance and Srei Equipment Finance — for completing the corporate insolvency resolution process (CIRP). This is on the basis of an application moved by Reserve Bank of India through its administrator seeking further 60 days to complete the CIRP.

It is to be noted that the Srei group companies, which are under the corporate insolvency resolution process, have received two resolution plans as Varde Partners and Arena Investors jointly submitted one. The consortium has put forward around ₹14,000-crore bid, while the second bid submitted by Shon Randhawa and her partner is of around ₹10,000 crore. 

The counsel appearing on behalf of the administrator stated that if further time up to 60 days is granted, it would enable the consideration of the resolution plans. The time sought in this application is within the outer limit of 330 days as laid down in Section 12(3) of the IBC.

Advanced stage

The two resolution plans have been received by the administrator and these plans are at an advance stage of consideration and the process shall be completed on or before November 3, 2022.

“We have considered the submissions of the Ld. Senior Counsel and have perused the application filed by the applicant. We are of the view that there are circumstances in which substantial time was consumed in various litigations mentioned in paragraph 20 of the instant application. We, therefore, consider it appropriate in the larger interest of resolution of the stressed assets of the corporate debtor to enlarge the time by 60 days from the date of expiry of the last enlargement of time. It is directed that the CIRP be completed within this enlarged period,” the NCLT order said.

The Kolkata bench of NCLT, had, on October 8 given its approval to start insolvency proceedings against the two companies after the RBI filed insolvency applications against the two companies.

The RBI-appointed administrator has admitted claims of around ₹31,868 crore of the total claims received of around ₹34, 223 crore from financial creditors to Srei Equipment Finance Ltd (SEFL). He had also admitted claims to the tune of ₹257 crore from financial creditors to Srei Infrastructure Finance.

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