NCLAT reserves orders in Vasan Health Care case
The National Company Law Appellate Tribunal, Chennai, (NCLAT), has reserved its judgement on appeals seeking more time for Vasan Health Care insolvency resolution. Both committee of Creditors and the Resolution Professional had filed the appeal as the deadline had been exceeded.
One of the resolution applicants – Maxvision – has also filed an intervention application demanding preference since it had submitted the bid within the time-frame fixed by the NCLAT.
However, other resolution applicants (Agarwal and one other) filed applications to resist the prayer in the intervention.
Recently, the National Company Law Tribunal (NCLT) said the Vasan Health Care resolution process cannot be started afresh from the stage of issuance of Expression of Interest as it would upset the timeline prescribed under the Insolvency and Bankruptcy Code, 2016.
The NCLT had granted an extension only till August 22 to finalise the accounts of Vasan Health Care after which, it said, the resolution professional could file a liquidation application. Justice M Venugopal, Acting Chairperson, and Kanthi Narahari, Member (Technical) said after completion of hearing of both sides, the ‘judgment is reserved.’
In 2017, NCLT Chennai ordered insolvency proceedings to be commenced against Vasan Healthcare based on a petition filed by one of its suppliers – Alcon Laboratories (India) Pvt Ltd. As on September 30, 2021, the healthcare chain’s29 claimants had a total outstanding of ₹1,749 crore, says information in the company’s website.