INSUBCONTINENT EXCLUSIVE:
SBI had requested the NCLAT to allow the interim distribution of Rs 175 crore to the secured lenders out of funds lying in the escrow
account of BKEL3 min read Last Updated : Sep 22 2024 | 3:00 PM IST
The National Company Law Appellate Tribunal (NCLAT) has ordered an
interim payment of 75 per cent of the total amount deposited in an escrow account to lenders of Baleshwar Kharagpur Expressway Limited
(BKEL), promoted by IL&FS Transportation Networks Ltd (ITNL).
Passing an order over the plea filed by the State Bank of India, NCLAT said
it failed to see any reasonable grounds for not taking any decision by the Board for an interim distribution, as per the Concession
Agreement and the Escrow Agreement.
"Interim distribution shall be made to the lenders of 75 per cent of the amount lying in the escrow
payments.
However, it added: "Lenders shall also give an undertaking for a refund of the amount received, in the event ultimately, it is
found that they were not entitled to the extent of the amount received by them."SBI had requested the NCLAT to allow the interim
distribution of Rs 175 crore to the secured lenders out of funds lying in the escrow account of BKEL.
BKEL did not service its loan after
January 31, 2020, and Rs 236.82 crore was lying in the company's escrow account as of September 14, 2023.
In the consortium meeting, the
lead bank as well as other banks requested for an interim distribution of cash available with the company.
BKEL is a special-purpose
vehicle promoted by ITNL for the development of road project in the Baleshwar-Kharagpur section of NH-60 in Odisha and West Bengal.
A
concession agreement was executed between NHAI and BKEL on April 24, 2012
BKEL availed financial facilities from the State Bank of Patiala and two other banks namely Allahabad Bank and IL&FS Financial
Services.
After the State Bank of Patiala merged with the SBI, SBI became the lead bank under the Common Loan Agreement
Over the period, BKEL has been sanctioned a term loan of Rs 396 crore out of which around Rs 146 crore was sanctioned by SBI.
Allowing the
plea, NCLAT said: "When the amounts to which lenders are entitled, which is accumulated in the escrow account and distribution of amount,
which has accumulated with the various IL&FS entities has already been directed to be distributed on an application filed by the Union of
India, we fail to see any reasonable ground for not taking any decision by the board for interim distribution, as per the Concession
Agreement and the Escrow Agreement."ITNL is part of the debt-ridden IL&FS Group.
On October 1, 2018, NCLAT superseded the board of IL&FS
on the recommendation of the Centre after the mega crisis in IL&FS, which shook the finance industry.(Only the headline and picture of this
report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)First
Published: Sep 22 2024 | 3:00 PMIST
