NCLT to deliver final order on NRE Coke’s liquidation today

Mumbai: The National Company Law Tribunal has sought Gujarat NRE Coke’s employee details as it is expected to deliver on Tuesday its final order on the company’s liquidation, with no concrete plans of revival in the Rs 4,900-crore default case being reached before the clock ran out. Resolution professional, Sumit Binani, has submitted his report to the Kolkata Chapter of the bankruptcy court in the case in which the stipulated period of 270 days to hammer out a resolution plan is over. Lawyers for the affected members of the staff argued that the court may order liquidation as a going business entity instead of shutting it down first to sell the company’s assets, said a person who attended the hearing.

A Gujarat NRE spoksperson said: “The NCLT has sought employee details of the company. Gujarat NRE Coke has its plants under production today, is making profit for last couple of months and employs over 1,100 people and supports the livelihood of 10,000 families. The employees had presented a resolution plan which provides higher payback to lenders (Rs .500 crore) as against Rs 350 crore liquidation value. However, the same could not be considered by CoC due to lack of time after the new ordinance has been brought resulting in completion of 270 days. The employees are moving the Supreme Court to protect their right to livelihood and their right to equality against any discrimination as enshrined in the constitution. “