NCLAT stays resolution plan for Assam Company on SEBI plea

The National Company Law Appellate Tribunal (NCLAT) has stayed the resolution plan approved by the Guwahati Bench of National Company Law Tribunal (NCLT) for Assam Company (India) Ltd., on a petition filed by the Securities and Exchange Board of India (SEBI).

Delisting of shares

In its petition, SEBI said it was aggrieved by the resolution plan for the company with respect to delisting of its equity shares.

In September, NCLT had approved a resolution plan filed by Abu Dhabi-based BRS Ventures Investment Ltd. for revival of Assam Company (India) Ltd. As a part of the plan, the firm had announced delisting of its equity shares.

In its petition, SEBI pointed out that on the allegation that Assam Company (India) and others were a shell company, an investigation was under way and it had passed an interim order in December 2017 directing appointment of an independent forensic auditor to verify financial irregularities and misuse of funds of the company.

The market regulator also said it was not aggrieved by the approval of the final ‘Resolution Plan’ by the Adjudicating Authority in terms of the aforesaid impugned order, except to the extent of permitting the delisting of the equity shares of the company.

SEBI said that the order approving the delisting of shares as a part of the resolution plan was directly in conflict with the jurisdiction and the interim directions passed by it.

The NCLAT has posted the appeal for hearing on November 1 before an appropriate Bench.

“In the meantime, till the next date of hearing, the implementation of the impugned order shall remain stayed in so far as it permits delisting of the equity shares of the company,” it said.