The NCLAT has dismissed the petition by Deccan Value Investors difficult the NCLT approval to its decision plan for debt-ridden Amtek Auto with out execution of a lease of a property.
A 3-member National Company Law Appellate Tribunal (NCLAT) Bench additionally imposed a value of Rs 1 lakh on the US-based hedge fund Deccan Value Investors (DVI) LLP, terming the petition as “frivolous”.
It additional stated execution of the long run lease (20 years) of the Ace Complex Land was not a situation precedent in regard to approval of decision plan.
“The appeal not only lacks merit but also is frivolous. We, while dismissing the appeal, impose costs to the tune of Rs one lakh on the Appellant (DVI) which shall be deposited in this Appellate Tribunal within 15 days,” stated NCLAT Bench headed by Acting Chairperson Justice B L Bhat.
Earlier, the Chandigarh Bench of the National Company Law Tribunal (NCLT) had on July 9, final 12 months, permitted the decision plan submitted by DVI for Amtek Auto Ltd.
While approving, the NCLT in its order rendered the precondition by DVI LLP for a long run lease (20 years) of the Ace Complex Land as infructuous.
This was challenged by DVI LLP earlier than the appellate tribunal contending that whereas approving its decision plan, the NCLT had gone past its jurisdiction in concluding that the requirement of the prior written consent of the mortgagee of the Ace Complex Ltd as supplied within the decision plan.
With PTI inputs
