The Calcutta court of the National Company Law Tribunal (NCLT) will proceed with the hearings of the lawyer of the Srei group of companies who will appear today on behalf of the administrator. Attorneys for the Consolidated Committee of Creditors (CoC) and the successful settlement applicant, National Asset Reconstruction Company (NARCL), will also present their arguments on Monday.

The lawyer who appeared for the administrator of the Srei group of companies had argued last week that no relaxation or modification was made and that all the plans submitted were subjected to the same evaluation matrix. He further argued that all compatible resolution plans were shared with the CoC by the admin prior to being put to a vote and if there was something “wrong” with the plan then it should have been flagged then and not now when the process is over. voting is complete.

He was presenting his arguments against the claims of the lawyer appearing on behalf of the debenture shareholders, who are also part of the CoC, who had earlier said that there was “no certainty of recovery” of the underlying assets of the corporate debtor and therefore, reimbursement to creditors could be affected.

Counsel for the debenture shareholders argued that under the final resolution plan filed by NARCL, the securities receipts to be issued to creditors would be through the redemption of non-convertible secured debentures and there is no guarantee that they can be redeemed in the expected price.

Following the completion of the challenge mechanism process, the Srei group entities had received three offers. Consolidated CoC for two insolvent Srei companies approved NARCL’s bid of ₹5,555 crore in NPV terms, including initial cash of ₹3,180 crore, with the highest vote (89.25 per cent) among the bidders . The resolution plan submitted by Authum Investment and Infrastructure (Rs 5,526 crore in NPV terms) received 84.86% of the votes and that of the consortium of Varde Partners and Arena Investors (Rs 4,680 crore in NPV terms) won 9% of the votes.

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