NCLAT rejects plea against approval of resolution plan of MBL Infrastructures

The National Company Law Appellate Tribunal (NCLAT) has dismissed petitions filed by four dissenting banks against an order of the Kolkata bench of the NCLT approving the resolution plan for MBL Infrastructures Ltd submitted by its promoter.

A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya declined the appeals filed by IDBI Bank, Bank of Baroda, Bank of India and State Bank of India, saying the Committee of Creditors (CoC) of MBL Infrastructures had approved the resolution plan by the firm's Chairman and Managing Director Anjanee Kumar Lakhotia with 78.50 per cent votes in favour.

Regarding the banks' plea that the resolution plan was not viable, the appellate tribunal said the CoC has approved the plan only after considering a techno-economic report relating its viability and feasibility for the company.

"We find no merit in these appeals. They are accordingly dismissed," said NCLAT.

It also observed: "As the CoC by majority voting share of 78.50 per cent, has approved the plan after taking into consideration the techno economic report relating to viability and feasibility of the resolution plan and viability of MBL Infrastructures, this Appellate Tribunal cannot sit in appeal in absence of any discrimination or unequal treatment of similarly situated Financial Creditors or Operational Creditors."