NCLAT’s ruling affirms the legality of fund distribution to dissenting creditors under the approved resolution plan for OCL Iron and Steel. File

NCLAT’s ruling affirms the legality of fund distribution to dissenting creditors under the approved resolution plan for OCL Iron and Steel. File
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The National Company Law Appellate Tribunal (NCLAT) has rejected a joint petition filed by five banks — Indian Bank, UCO Bank, Bank of Baroda, ICICI Bank and Union Bank of India — challenging the distribution of funds to the dissenting financial creditors SBI and Punjab National Bank.

A two-member NCLAT Bench said the distribution mechanism for funds received from the resolution plan approved by the lenders’ body Certificate of Conformity (CoC), in its commercial wisdom, and subsequently, the National Company Law Tribunal (NCLT) order is valid, lawful, and binding.


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