NCLAT asks Monnet Power Resolution Professional to consider BHEL's claims

Appellate tribunal says RP must consider BHEL's claims if company is able to verify the same

The National Company Law Appellate Tribunal (NCLAT) on Tuesday asked the Resolution Professional (RP) of Monnet Power Company to consider the claims of Bharat Heavy Electricals Limited (BHEL) in entirety if the latter was able to prove the same on the basis of “accounts and evidence”.

The RP of Monnet Power had rejected BHEL’s claim of Rs 977 crore along with interest, following which BHEL had approached the Mumbai bench of National Company Law Tribunal (NCLT). The NCLT Mumbai on October 12 said that the RP had “wrongly disallowed the substantial claim in its entirety”. It had then asked the RP to re-examine BHEL’s claim based on the accounts and evidence that the company presented. “If the evidence corroborated the claim, the same should also be taken into account while finalising the total claim of BHEL,” NCLT Mumbai had said.

Aggrieved by the NCLT order, the RP had approached NCLAT which reaffirmed the NCLT Mumbai bench’s October 12 order and asked the RP to follow the tribunal’s order.

Monnet Power owes around Rs 6,000 crore to a consortium of lenders, including State Bank of India and Punjab National Bank.