SREI Equipment Finance Ltd, a key secured creditor of Nirmal Lifestyle (Mulund) Pvt Ltd, has withdrawn its appeal before the National Company Law Appellate Tribunal (NCLAT) challenging the resolution plan. According to reports from The Economic Times, the withdrawal came after the successful resolution applicant, Mantra Properties, clarified that a disputed mortgaged property was not included in the approved plan. The company had approached the appellate tribunal through senior counsel Gopal Jain and Ativ Patel of AVP Partners, arguing that the plan wrongfully included a property exclusively mortgaged to it.
The Mumbai bench of the National Company Law Tribunal approved Mantra Properties' acquisition of the debt-laden firm in April. As reported by The Economic Times, the company has admitted liabilities of ₹1,491 crore, whereas the bidder has proposed ₹215 crore under the resolution plan to revive the company. The company was admitted under the Corporate Insolvency Resolution Process (CIRP) in July 2023, in an application filed by Beacon Trusteeship Ltd.
SREI Equipment Finance argued that the asset had been charged in its favour through a mortgage deed executed on September 18, 2019, against two loans of ₹84.2 crore each. According to The Economic Times, the company also argued that without hearing it, the property ought not to have been included in the resolution plan. However, Akshay Petkar, counsel appearing for Mantra Properties, clarified that the land forming part of the disputed CTS number, identified as Nirmal Olympia II, was outside the scope of the approved resolution plan.
The company has only two secured financial creditors: Beacon Trusteeship, with admitted liabilities of ₹902 crore and a 60.54% share in the Committee of Creditors (CoC); and Assets Care and Reconstruction Enterprise Ltd, with admitted debt of ₹589 crore and the remaining 39.46% share. As reported by The Economic Times, the resolution professional received only three resolution plans, including those from Mantra Properties, Vasavi Realty Pvt Ltd, and Sardarmal Prithviraj Constructions Private Limited in consortium with Mr Dharmesh Sardarmal Jain.
