New Delhi : D Day has arrived yet again for Reid & Taylor at the National Company Law Tribual (NCLT), with its next hearing slated for February 5 in Mumbai. This is when the fate of the latest bidder Indian Gas Ltd will be decided.
During the hearings, the NCLT Bench has thrown into stark relief that they now don’t believe the Employee Association at all and are even extremely suspicious that there is a definitive effort to sabotage the process of resolution.
In the continuing saga replete with twists and turns by way of bids and withdrawals to participate in the CIRP for Reid & Taylor, despite time of statutory 270 days period having elapsed, Indian Gas Ltd with its last minute bid informing the Bench that the company, which has Rs 1,500 crore net worth, is in the hunt. But recent history may well repeat itself on Tuesday when the new bid is turned out.
The reason being that records of Registrar of Companies reveal that Indian Gas Ltd has total shareholders’ funds of Rs 5,72,31,856 and share capital of Rs 6 crore as on March 31, 2018, according to the Balance Sheet for FY 2017-18.
On closer examination into the internal financials (paid up capital) of the group entities associated with one of the Directors of Indian Gas Ltd, Thamburaj Mohan including Indian Power Projects Ltd (Rs 5 crore), MRC Services Pvt Ltd (Rs 9 lakh), Indian Gas Ltd (Rs 6 crore), Indian Integrated Energy Ltd (Rs 10 crore), Thamara Green farms Pvt Ltd (Rs 1 lakh), Thithukudi Green Farms Pvt Ltd (Rs 1 lakh), Nellai Dry Land Agro Farms Pvt Ltd (Rs 1 lakh), IMP Infra Holding Pvt Ltd (Rs 1 lakh), Venthan Enterprises Pvt Ltd (Rs 1 lakh), MRC Green Energy Pvt Ltd (Rs 1 lakh) amounting up to about Rs 21.15 crore in all.
In reality, in its submission through Rinav Manseta, Indian Gas Ltd had informed the NCLT Mumbai Bench of having a net worth of Rs 1,500 crore.
Another investor SPGP had earlier this month claimed a net worth of Rs 67 crore but eventually could prove a net worth of a meagre Rs 6 crore and then backed out apologizing to the Bench for the company’s inability to participate in the Resolution Process.
The NCLT Mumbai Bench during the hearing had said that only due to the humanitarian angle they had considered a smallest opportunity that was available to the company to revive itself even after the statutory deadline of 270 days had passed.
In the last hearing, the NCLT Mumbai Bench had noted that if the investor (Indian Gas Ltd) fails to deposit non-refundable EMD of Rs 2 crore by February 5, it will be construed that the said the person representing Indian Gas Ltd had made false statements for obtaining adjournment for which they may proceed against this person under section 420 of IPC.
Finquest had opposed the claim of Indian Gas Ltd to participate in the Resolution Process of R&T saying the time of statutory 270 days period should not be extended under any circumstances. Its counsel Zal Andhyarujina said that its client feels that Indian Gas has not come to NCLT with genuine interest.
In one of the hearings, on the issue of KPMG forensic report, the Bench noted that there is no doubt that there was fraud committed by the erstwhile promoters in the company. The Bench had then observed that there was a clear case of fraud that can be treated under IPC also and if required, the Bench can request the police and other authorities to look into it and initiate suitable proceedings.