Unimark Remedies resolution: Single-member NCLT bench to give finality to a split verdict
The National Company Law Appellate Tribunal (NCLAT) has directed to refer to a third member the split orders passed by a two-member Mumbai NCLT bench on the resolution plan
An umpire single-member bench of the National Company Law Tribunal will now give finality to a split verdict by NCLT’s two-member bench over the resolution plan for debt-ridden pharma company Unimark Remedies, said NCLAT. The National Company Law Appellate Tribunal (NCLAT) has directed to refer to a third member the split orders passed by a two-member Mumbai NCLT bench on the resolution plan.
The appellate tribunal has directed the Tribunal (RP) of the company to bring the facts to the notice of the National Company Law Tribunal (NCLT) president about the split orders passed by NCLT’s Mumbai Bench on August 30, 2019.
In the order, member (judicial) had sought a fresh valuation of the company, while member (technical) dissented through a separate order.
The NCLAT observed that none of the dissenting members has referred the matter to the NCLT president for referring it to a third member.
“In the facts and circumstances, we are of the view that RP should bring this fact to the notice of the said bench of the adjudicating authority comprising of same members who will take steps to refer the matter to the third member in accordance with law and if so required, after necessary permission of the president, NCLT,” said an NCLAT bench headed by Chairperson Justice S J Mukhopadhaya.
It further said: “The RP will also bring this fact to the notice of the President, NCLT who may pass the appropriate order to place the matter before the third member.”
NCLAT’s direction came over the petition filed by the resolution professional (RP) of the company, who had preferred an appeal after a split verdict.
“In view of the fact that there is a dissenting order passed by the two members, we are not considering the question of legality and proprietary of the order or the adverse remarks passed against the RP, which is left open for determination by the third member and if so required later it may be decided by this appellate tribunal,” the NCLAT further said.
The RP had filed the resolution plan, which was approved by the Committee of Creditors of Unimark Remedies with 72.25 per cent vote.
However, in the meantime, one dissenting financial creditor of the company raised question over valuation.
After this, one member ordered for a fresh valuation, while the other dissented.
The NCLT had initiated Corporate Insolvency Resolution Process against Unimark Remedies on Apri 13, 2018 admitting the plea of the private sector lendor ICICI Bank claiming an outstanding loan of around Rs 150 crore.