The National Company Law Appellate Tribunal today declined to extend the insolvency period for Amtek Auto Ltd., setting the stage for liquidation of the debt-ridden car-parts maker.
An appellate tribunal bench headed by Justice SJ Mukhopadhyay ordered the National Company Law Tribunal to pass orders on liquidation of Amtek Auto, which fell under debt after chasing a string of overseas acquisitions.
“We're not inclined to give any direction as was sought for by the ‘Committee of Creditors' nor inclined to exclude any period calling for fresh ‘Resolution Plan',” the NCLAT's judgment said. “More than 270 days having passed, the Adjudicating Authority will pass appropriate order of liquidation, which will be in accordance with law.”
The insolvency petition against Amtek Auto was initiated on July 24, 2017, and the Committee of Creditors approved the bid by U.K.-based Liberty House by a vote of 94.2 percent in April the following year. A second bid worth Rs 3,150 crore by Deccan Value Investor was withdrawn before the bid by Liberty House was approved.
However, Liberty House withdrew its Rs 4,119-crore and refused to furnish the required bank guarantees.
The committee in June this year sought to initiate a new round of bidding by publishing a new information memorandum. The remaining bidder DVI argued that coming up with a new set of eligibility criteria was designed to disqualify them from the process.
The tribunal had disallowed the new round of bidding and asked the committee to consider the bid by DVI while allowing it to revise its bid. However with the NCLAT's order, the NCLT will have to pass orders on the company's liquidation.
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