NCLAT rejects UBI’s plea to oppose Darwin Platform’s bid for Lavasa Corp

The National Company Law Appellate Tribunal on Wednesday dismissed Union Bank of India’s plea challenging Darwin Platform Group’s bid for Lavasa Corporation.

Union Bank of India (UBI) had challenged the Mumbai bank’s July 21, 2023 order of the National Company Law Tribunal (NCLT) approving Darwin Platform Infrastructure Ltd’s resolution plan for Lavasa Corporation, which is developing a private hill town used to be. in Pune district.

The public sector lender was pushing for asset maximization and stated that if a new process and valuation were to take place, Lavasa Corporation would achieve greater value.

According to the reports, Darwin Group’s bid for Lavasa was Rs 1,814 crore.

Noting that UBI itself was a member of the CoC, the National Company Law Appellate Tribunal (NCLAT) also approved the plan as part of the agreeing financial creditors who approved the resolution plan with 96.41 percent votes.

After approval of the resolution plan by the NCLT, the UBI has moved the insolvency tribunal seeking revocation of the order.

However, it was dismissed by the NCLT on November 10, 2023 and subsequently UBI appealed to the NCLAT.

The appeals court also rejected after saying that maximization is not a reason to revoke the order.

“We are of the view that no merits have been raised in the application for reversal of judgment and that the Adjudicating Authority has rightly dismissed the application. There is no merit in the appeal. The appeal is dismissed,” the report said.

First print: January 11, 2024 | 12:04 pm IST