NCLAT rejects Sebi plea against resolution plan of Assam Company

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea by capital market regulator Sebi challenging the approval given by NCLT Guwahati to the resolution plan of Assam Company India Ltd.

A three-member bench headed by NCLAT Chairperson Justice S J Mukhopadhaya also gave a go ahead to the Securities and Exchange Board of India (Sebi) to take steps against promoters, directors or officials of Assam Company India if they are found violating listing laws.

Sebi had challenged the NCLT order of September 20, 2018, approving the resolution plan of Abu Dhabi-based BRS Ventures Investments for Assam Company. The resolution plan has provisions to delist Assam Company from National Stock Exchange and BSE.

The appellate tribunal ruled that the Sebi's appeal was "not maintainable" in the "absence of any violation of the provisions" of the Insolvency & Bankruptcy Code.

"We are not inclined to interfere with the impugned order of approval dated 20th September, 2018 passed by the NCLT Guwahati Bench," the NCLAT said.

"However, the order passed by the NCLT or this Appellate Tribunal will not come in the way of the SEBI or any competent authority to take steps against erstwhile Promoters, Directors or Officers or others, if any or all of them had violated any of the provisions under SEBI Act or rule framed thereunder or any other law as may be taken against such person of listed company."
Moreover, the "interim order passed by Sebi does not amount to any existing law, to attract clause of Section 30(2) of the I&B Code, therefore, SEBI cannot take plea that the approved Resolution Plan is in contravention of any law for the time being in force."