NCLAT stays Sree Metaliks' resolution plan after appeal by Srei Equipment Finance

MUMBAI: The National Company Law Appellate Tribunal ( NCLAT) has stayed the resolution plan of Sree Metaliks after one of the financial creditors Srei Equipment Finance appealed against the plan. On November 7, the Kolkata chapter of the National Company Law Tribunal (NCLT) had approved a resolution plan for Sree Metaliks with more than three-fourth of the creditors accepting the plan submitted by promoter Mahesh Kumar Agarwal.

“On oral player made for the appellant (Srei Equipment Finance) the 'Resolution Applicant' is allowed to be impleaded," the order said. "In the meantime the respondent (Sree Metaliks Ltd) will not execute the order dated November 7."

The Resolution Plan, was approved by the committee of creditors with a voting share of 78.53%. The plan promised to repay the principal amount in full, but the interest payable was to be waived off.

This was one of first few cases admitted by NCLT since the incorporation of the dedicated bankruptcy courts. Financial lenders are Edelweiss Asset Reconstruction Company, Srei Equipment Finance, JM Financial, ICICI Bank, Peagasus Finance, Oriental Bank of Commerce, Kotak ARC, and IFCI.