As part of the process, the National Company Law Tribunal (NCLT) has also appointed G Madhusudhan Rao as the company’s liquidator, said people aware of the development.
Last year in December, the Mumbai-based power sector equipment manufacturer was admitted under the corporate insolvency resolution process (CIRP) in an application filed by the State Bank of India after it defaulting on its dues of about Rs 167 crore.
When the resolution professional of the company invited bidders, the company received interest from three potential applicants, including Aruna Kailash Shah, Mayank Goyal and Subhalakshmi Investment Advisory.
However, the lenders felt that without having clarity on and taking possession of the assets of the bankrupt company, the proposed bidders would not be able to submit an effective resolution plan and, accordingly, on June 3, 2023, the lenders with 100% voting rights decided to initiate the liquidation process of Bil Energy System.
The lenders noted that the company was not a going concern for three years before being admitted to CIRP, and that most of its assets are untraceable.“The absence of physical assets, machinery transfers without lender consent before the CIRP, the status of going concern at the insolvency commencement date, and the need for clear demarcation and physical possession of factory land are some of the pressing issues detrimental to getting any value,” said Kalpit Khandelwal, partner at the law firm Aekom Legal. “Navigating this intricate landscape, the path to recovery for any lender is poised to be a journey marked by legal battles and intricate litigation rounds.”Challenging this, one of the bidders, Mayank Goyal, argued that the decision of the CoC (committee of creditors) requires reconsideration, as it is against the tenets of the code and the objective of maximisation of value of the assets of the distressed company.
Countering this, the resolution professional (RP) of the company argued that State Bank of India (SBI) is the sole member of the CoC which enjoys charges on the assets of the company.
Besides, in August of 2015, long before the initiation of the resolution process, SBI had obtained an order from the district magistrate to take enforcement action, but could not take possession as entry was denied to the representatives of the lender.
The RP, also argued that the company’s machinery was sold by the suspended management long before the initiation of CIRP, without even seeking the permission of SBI, a charge-holder.
Bil Energy’s clients include BHEL, Emerson Climate Technologies, Suzlon, Bharat Bijlee and Tecumseh Products, among others.
Besides, in August of 2015, long before the initiation of the resolution process, SBI had obtained an order from the district magistrate to take enforcement action, but could not take possession as entry was denied to the representatives of the lender.
The RP, also argued that the company’s machinery was sold by the suspended management long before the initiation of CIRP, without even seeking the permission of SBI, a charge-holder.
Bil Energy’s clients include BHEL, Emerson Climate Technologies, Suzlon, Bharat Bijlee and Tecumseh Products, among others.
Currently, the company has not been concern for the last three years and most assets of the company are untraceable.
Bil Energy’s clients include BHEL, Emerson Climate Technologies, Suzlon, Bharat Bijlee and Tecumseh Products, among others.
