Jamshedpur Cable Company’s Insolvency Case Takes Unexpected Turn
Allegations of illegitimate creditors and discrepancies in claimed liabilities cast doubt on INCAB’s insolvency proceedings, potentially impacting resolution.
JAMSHEDPUR – A National Company Law Tribunal (NCLT) hearing in Kolkata saw dramatic developments in the case of Jamshedpur-based cable company INCAB, as the legitimacy of its financial creditors came under intense scrutiny.
Akhilesh Srivastava, presenting before NCLT members Arvind Devanathan and Bidisa Banerjee, challenged the authenticity of INCAB’s current financial creditors.
The presenter argued that entities like Kamala Mills Limited and Pegasus Asset Reconstruction Company had not directly lent to INCAB but acquired non-performing assets from original creditors.
Srivastava contended that all loans to INCAB had become NPAs by 1992 and were extinguished by 1996, potentially invalidating claims made in the 2018 petition.
Questions were raised about the legitimacy of the committee of creditors and the role of the interim resolution professional in the proceedings.
The hearing also touched upon concerns regarding Vedanta’s alleged resolution plan for INCAB and improper management takeover by Ramesh Ghamandiram Gowani and associates.
A significant discrepancy was highlighted between the Rs. 4000 crore claimed by alleged creditors and a 2016 Delhi High Court order fixing INCAB’s liability at Rs. 21.63 crore.
The inconclusive NCLT hearing has left many questions unanswered about INCAB’s true financial state and the validity of claims against it.
This case continues to draw attention from industry observers and stakeholders, potentially setting precedents for similar insolvency proceedings.
The outcome of this case could have far-reaching implications for the interpretation of NPA regulations and creditor rights in insolvency cases.
