Dhir & Dhir Associates successfully safeguarded the contingent right of Indian Renewable Energy Development Agency Limited in the resolution process of VBC Industries Limited (under IBC), wherein IREDA had granted term loan to M/s Orissa Power Consortium limited (OPCL) which is a subsidiary of VBC industries. The said loan was secured by way of mortgage over the property of VBC along with the pledge of shares to the extent of 40.57%, as held by VBC in OPCL. During the resolution process of VBC, the Resolution Plan as approved by CoC proposed cessation of mortgage and extinction of the pledge of shares. The claim of IREDA as financial creditor of VBC was rejected initially by the NCLT. However, in an appeal as preferred before NCLAT the contingent right of IREDA was recognized and the same was directed to be brought to the notice of Resolution Applicant.

After representing IREDA before NCLAT an application was filed by Dhir & Dhir Associates before the National Company Law Tribunal, Hyderabad Bench (NCLT) showcasing the contingent right of IREDA, the said Application was heard on urgent basis via video conferencing and it clarified that IREDA would qualify to be a ‘secured creditor’ and that the Resolution Plan submitted by the Resolution Applicant cannot take away the mortgage right of IREDA without following the process as recognized in law and directed Resolution Applicant to modify the Resolution Plan within two weeks validating that the mortgage as well as pledge of shares will continue till IREDA is paid in full by OPCL. The matter was led by Varsha Banerjee, Partner along with Amir Bavani, Principal Associate.