BHEL approaches NCLAT seeking recovery in Monnet Ispat

Public sector enterprise BHEL, which is an operational creditor of Monnet Ispat, has approached the National Company Law Appellate Tribunal (NCLAT) seeking to recover its dues from the stressed company.

A two-member bench headed by NCLAT Chairman Justice S J Mukhopadhaya has issued a notice to the company and JSW Steel, which has emerged as the highest bidder for the firm.

BHEL had provided equipment that were inevitable for the functioning of Monnet Ispat's Raigarh plant.

The company has due amount of around Rs 15 crore.

It had approached the Mumbai bench of the National Company Law Tribunal for recovery.

However, the NCLT had on July 19 dismissed its plea saying that the committee of creditors (CoC) had approved nil liquidation value due to operational creditors and thus there was no reason for the Tribunal interference.

Requesting the NCLAT to set aside the NCLT's order, BHEL in its petition filed through its counsel Anand Varma said operational creditors should be given their dues in the resolution plans also, a view which has been approved by the NCLAT in the Binani Cements matter.

According to BHEL, the amount claimed by the operational creditors is less than 5 per cent of the total claim and they have been allotted just Rs 25 crore for 132 operational creditors against a debt of Rs 444 crore.

"The appellant is not even aware that whether it would receive any amount from the said Rs 25 crore," BHEL said in the petition.

Monnet Ispat total default is around Rs 10,000 crore and lenders have approved Rs 2,875 crore bid of JSW Steel after almost 75 per cent hair cut.