Aban Offshore Admitted for Insolvency Resolution by NCLT

The National Company Law Tribunal (NCLT) in Chennai has admitted Aban Offshore Ltd. for insolvency resolution following a petition by Punjab National Bank. The petition was filed under Section 7 of the Insolvency and Bankruptcy Code, 2016, for a default amount of ₹366.09 crore. The order copy is awaited.

The Delhi High Court has urged the central government to revisit its tender conditions that prevent companies undergoing corporate insolvency resolution from participating in government tenders for seven years. The court emphasized that while it cannot alter tender conditions, the government should consider the Insolvency and Bankruptcy Code's (IBC) objective of reviving distressed companies through successful resolution applicants [1].

The court's decision came in response to a petition by Era Infra Engineering, which sought to challenge a condition issued by the Airport Authority of India (AAI) that bars companies who had undergone insolvency in the last seven years from participating in its tenders. The court noted that the tender condition was an arbitrary and discriminatory stipulation that should be either struck off or read down to treat the time spent by the company in the insolvency process as "zero period" [1].

The court emphasized that the IBC aims to revive distressed companies as ongoing concerns by introducing a Successful Resolution Applicant (SRA) who would be tasked with reviving the Corporate Debtor. The court stated that the government, as the sole authority formulating public procurement policies, should consider this objective when drafting tender conditions [1].

The court also noted that stakeholders involved in an ongoing concern taken over by the SRA would include workers, employees, financial institutions, and banks. The court stated that these stakeholders' existence may be contingent upon the ongoing concern being rehabilitated and revived, making it a relevant consideration for the government [1].

Meanwhile, the National Company Law Tribunal (NCLT) in Chennai has admitted Aban Offshore Ltd. for insolvency resolution following a petition by Punjab National Bank. The petition was filed under Section 7 of the IBC, 2016, for a default amount of ₹366.09 crore. The order copy is awaited [2].

References:
[1] https://economictimes.indiatimes.com/industry/indl-goods/svs/engineering/delhi-high-court-urges-review-of-govt-tender-conditions-affecting-insolvent-companies/articleshow/123637975.cms
[2] https://www.financialexpress.com/business/industry-blusmart-insolvency-claims-worth-over-rs-500-crore-filed-3958407/