Lawyers reviewing documents outside the National Company Law Tribunal.
The National Company Law Appellate Tribunal (NCLAT) has affirmed a prior order by the National Company Law Tribunal (NCLT) regarding the distribution of funds from a resolution plan in the insolvency proceedings of OCL Iron and Steel. This decision dismisses a challenge brought by five banks contesting the fund allocation mechanism.
The core dispute revolved around the distribution of funds to SBI and Punjab National Bank, which was part of Indrani Patnaik’s approved resolution plan for OCL Iron and Steel. The appellate tribunal upheld the distribution mechanism, noting that it had been previously approved by the lenders’ body and the NCLT.
The NCLAT’s decision reinforces the validity of the approved resolution plan and the fund distribution framework agreed upon by the involved parties. This ruling provides clarity and legal certainty for insolvency resolutions and fund distribution, particularly in cases with multiple creditors and complex financial restructuring.
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