State Bank of India has filed an application under Section 7 of IBC against Barasat-Krishnagar Expressways Limited (BKEL) before Hon'ble NCLT, Hyderabad. The application was resisted on the grounds that (i) it is barred by limitation; (ii) the loan was financed by the Financial Creditor as a contingent one, wherein the works shall be completed and only then it would be in a position to benefit or reap the benefits of interest and principal component; (iii) there is no specific acknowledgement in the balance sheet. The NCLT rejected the contention raised and admitted BKEL put into CIRP.
It is a well fought battle, and the Hon'ble NCLT has passed admission order in a span of nearly 5 months in line with the objectives of IBC, i.e., timely and effective resolution of insolvency and maximization.
BKEL is a special purpose vehicle promoted by Madhucon Infra Limited (MIL) andMadhucon Projects Limited (MPL) to undertake the implementation of four-laning of Barasat to Krishnagarsection of NH-34 from km 31.00 to km 115.00 in the state of West Bengal under NHDP Phase III on Design, Build, Finance, Operate, Transfer (DBFOT) Annuity basis.
Dentons Link Legal advised and represented State Bank of India. The team was led by Ravi Charan Pentapati (Partner) and assisted by Niharika Agarwal (Associate).
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