NCLT directs Alok Industries’ RP to submit approval for RIL-JM Fin plan

The Ahmedabad bench of the National Company Law Tribunal (NCLT) on Monday directed the resolution professional (RP) of Alok Industries to submit an application for the approval of the resolution plan submitted by Reliance Industries (RIL) and JM Financial ARC. Alok Industries’ committee of creditors (CoC) had re-voted on the plan last week, with 72% of the CoC voting in favour of it. The tribunal will hear the matter on July 19.

The Alok Employees Benefit and Welfare Trust had earlier sought rejection of liquidation proposal filed by the RP. The single bench of NCLT on Monday said the RP has the liberty to withdraw the liquidation application based on the amended Insolvency and Bankruptcy Code (IBC).

In a statement last week, RIL had said its resolution plan was put to vote before the CoC on June 20 and has received the assent of 72. 192% of the total votes. The voting threshold required to pass a resolution was recently lowered to 66% from 75% earlier following an amendment to IBC. #casansaar (Source - Financial Express)