NCLAT Orders Resolution Professional To Submit Email To Sarda Energy In SKS Power Dispute

The National Company Law Appellate Tribunal directed the resolution professional of SKS Power Generation on Wednesday to submit the email sent to the successful bidder, Sarda Energy and Mining, on May 8, 2023. This email, which sought clarifications on the resolution plan, is to be brought on record.

A three-member NCLAT bench instructed the RP to file an affidavit that includes communications between Sarda Energy and the RP. The tribunal scheduled the next hearing for Aug. 30.

The NCLAT was hearing appeals from Torrent Power and Singapore-based Vantage Point Asset Management Pte, challenging the Aug. 13 order of the Mumbai bench of the NCLT, which approved Sarda Energy and Mining's bid.

Both Torrent Power and Vantage Point were contenders for acquiring the debt-ridden thermal power producer and had opposed SEML's selection by the committee of creditors. Their pleas against the approval were previously dismissed by the NCLT.

During Wednesday's proceedings, the NCLAT chairperson said the petitioners raised two primary concerns, one of which involved the email from the RP and the lenders on May 8, 2023. The counsel representing the RP and the CoC agreed to submit this email to the tribunal.

"The counsel for the resolution professional seeks liberty to bring on record the email dated May 8, 2023, which was sent to Sarda Energy and Mining," the NCLAT order stated. The RP also indicated that other relevant records would be prepared for review if required.

Torrent Power has alleged that Sarda Energy and Mining made changes to key commercial terms under the guise of clarification. The May 8, 2023, email was sent by the RP to all prospective resolution applicants, including SEML. Torrent Power’s main contention revolves around what it describes as a modification of key commercial terms in the resolution plan, leading to claims of perversity and discrimination.

On Tuesday, SKS Power Generation's lenders informed the NCLAT that they had received an upfront payment of Rs 1,950 crore from Sarda Energy and Mining, the successful bidder.

They also rejected allegations of any "malafide" intention or bias in favor of any party during the approval process. The lenders emphasised that a thorough evaluation was conducted as per the earlier direction of the NCLAT, leading to the CoC's clear decision in favour of Sarda Energy’s resolution plan.

(With inputs from PTI)