ET: NCLT rejects Deccan Value Investors’ plea against resolution professional of metalyst forgings

2 March 2019: The National Company Law Tribunal (NCLT), Mumbai, has rejected Deccan Value Investors’ (DVI) plea for “seeking direction against the resolution professional” of Metalyst Forgings and undertaking transaction and forensic audits of the company by an “independent expert”, calling the plea “malafide” and meant to intentionally delay the approval of its resolution plan by the tribunal. 

Its wish to direct the resolution professional (RP) and committee of creditors (CoC) to furnish certain documents such as final transaction audit and forensic audit reports, cost audit reports, historical production data, etc., has also been turned down by the bench as “not tenable” with the argument that such documents should have been summoned before DVI submitted the resolution plan for approval with the CoC DVI is an US-based employee-owned hedge fund sponsor. 

It had successfully bid for Metalyst Forgings after the CoC approved its plan, but in December, it had filed an application wanting the NCLT to “cancel” its plan as being “vitiated” by “misrepresentation of facts”. It wanted such audits to take place to bolster its plea to cancel the plan. 

The Economic Times reported  

Categories: General News, India Bankruptcy

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