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The National Company Law Tribunal, Hyderabad, has rejected the bid of Area Projects in the United Seamless Tubulaar case.
The Tribunal was dealing with a batch of petitions which were filed in the United Seamless Tubulaar case, a joint venture between the Kamineni Group and UMW Group of Malaysia.
Ratakonda Murali, NCLT Presiding Officer, passed an order rejecting the plea submitted by Area Projects to consider its revised bid, which was submitted after the due date.
While dismissing the application, which was backed by Indian Bank, the NCLT pronounced that the plea of Area Projects was only intended to delay the resolution process and had no merits.
The petitioner had also made some allegations against the previous bid and resolution plan moves.
The bid of Maharashtra Seamless Ltd, a DP Jindal Group company, of ₹477 crore was backed by majority lenders (87 per cent), who had approved the bid.
Indian Bank had backed the rebid of Area Projects, which lacked financial credibility.
Major relief
The order also came in as a major relief to the Insolvency Resolution Professional and the auditors who had assisted him for having exercised due diligence in the entire resolution process and specifically international lenders who had approved the resolution plan submitted by Maharashtra Seamless Ltd.
While the frivolous charges of wrongdoing stand dismissed, the application pertaining to the approval of Resolution Plan submitted by Maharashtra Seamless Ltd will be heard by the NCLT on June 7.
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