The National Company Law Appeals Tribunal (NCLAT), Chennai, allowed an appeal filed by the creditors committee of Vasan Health Care Pvt. Ltd seeking an extension of time in the insolvency resolution process.
NCLAT said it is of the opinion that Vasan Health Care cannot be put into liquidation and noted that the Supreme Court has ruled that liquidation is the last resort in the insolvency process. He noted that there had been exceptional circumstances, including a nationwide foreclosure, for not completing the insolvency process on time.
The creditors had filed an appeal against the order of the National Company Law Tribunal (NCLT) which had rejected a request for an extension of time until November 30. The NCLT had only allowed time until August 22 to finalize Vasan Health Care’s accounts and also issued a directive for the filing of the liquidation request.
The appeal allowed a deadline until November 30, 2021 to complete the company’s insolvency process and also excluded the deadline from August 18, 2021 to November 25, 2021 for filing appeals.
Max Vision Eye Hospital, one of Vasan Health Care’s bidders, had filed a request for intervention seeking preference, claiming that it had submitted its bid on time. Two other bidders, ASG Hospital Private Ltd. and Dr. Agarwals Healthcare Limited, opposed and wanted all offers to be considered.
NCLAT said it did not enter into the question of who submitted the bid first and noted that the common position taken by bidders was to consider all potential creditors committee bids on one foot. equal with other requests.
In 2017, the NCLT ordered the opening of insolvency proceedings against Vasan Health Care, in a petition filed by Alcon Laboratories (India) Pvt. Ltd, one of its suppliers. Financial creditors including Andhra Bank, Edelweiss Asset Reconstruction, Kotak Mahindra Bank, HDFC Bank, among others, have a claim totaling 1,268 crore against the company.