High Court impleads Receiver of Steel Complex in company takeover case

HC cancels earlier order offering protection to officials of Chhattisgarh firm

Published - July 09, 2024 09:12 pm IST - Kozhikode

The Kerala High Court has ordered to implead Anish Aggarwal, the receiver of SAIL-Steal Complex at Cheruvannur, Kozhikode, in the case against the takeover of the company by Chhattisgarh Outsourcing Services Private Limited filed by various stakeholders including trade unions.

Mr. Aggarwal is the resolution professional appointed by the National Company Law Tribunal (NCLT) to ease out the takeover. As the State government has earned a favourable order from the National Company Law Appellate Tribunal - Chennai (NCLAT) against the order of the Kochi bench of the NCLT, the stakeholders have questioned the role of the Receiver in selling a company worth more than ₹300 crore to the Chhattisgarh firm for just ₹30 crore.

Mr. Aggarwal has been served a notice to this effect. Justice V.G. Arun of the Kerala High Court, who heard the case on Monday, scheduled the next hearing for July 15.

Meanwhile, the High Court dismissed the resolution applicant’s (Chhattisgarh company) petition seeking police protection for its officials to enter the premises of SAIL- Steel Complex, modifying its earlier order dated June 28 that ordered the police to offer protection to the officials. In the order dated July 2, Justice Devan Ramachandran of the Kerala High Court had pointed out that the right of the petitioners to take possession of the property would depend on the orders of the NCLAT. Instead, the court directed the police to ensure law and order on the premises of the company, and that no one caused any damage to them or trespassed on them.

Meanwhile, the next hearing on the petition filed by the State government at NCLAT will be held on July 22. Granting an injunction against the NCLT order approving the takeover, the NCLAT had earlier observed that the resolution applicant had no right to alienate the property as the land belonged to the State government.

The NCLT order for takeover is the result of the company’s failure to pay back ₹45 crore it had taken as loan from Canara Bank that was used to install a re-rolling mill in 2016. The NCLT took up the case after the bank filed a petition seeking initiation of insolvency proceedings.

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