The National Company Law Tribunal (NCLT) at New Delhi has sent Bira and its creditors to mediation to explore a settlement of insolvency proceedings pending against the company..A special bench comprising Judicial Member Ashok Kumar Bhardwaj and Technical Member Ravindra Chaturvedi passed the order on September 15 while hearing multiple proceedings against B9 Beverages Limited, including a Section 7 insolvency plea filed by Unity Small Finance Bank Limited."It is made clear that if no settlement is arrived between the parties in the meeting directed to be scheduled, no further indulgence would be shown in the matter," the Tribunal said..The direction came after the Tribunal was told that financiers were willing to infuse funds into the company and revive it. Counsel appearing for the company submitted that settlement discussions were being held with the creditors.However, several creditors expressed reservations about the proposal. Unity Small Finance Bank placed before the Tribunal a September 10 letter to show that an offer of ₹3 crore had been made against dues of over ₹19.04 crore. It argued that the proposal could not be regarded as a serious or plausible settlement offer.Axis Bank, on the other hand, informed the Tribunal that it had received a settlement offer and was considering it.Counsel for some of the other creditors alleged that the settlement attempts were only intended to buy time. They raised apprehensions that the company's assets could be pilfered. They also pointed out that the proceedings had remained pending for more than 10 months awaiting consideration on admission..The NCLT noted that Bira had earlier indicated that matters would be settled with its creditors, but that the situation had not developed in the manner projected. It also took exception to a chart regarding changes in the company's shareholding that was produced before it."We are unable to appreciate that how the chart can be relevant at this stage. The same can be perceived only an attempt on behalf of the Corporate Debtor to mislead the Tribunal on the issue," the order said..It ordered counsel representing Bira the financiers seeking to infuse funds and the promoters to meet representatives of the creditors at the office of Advocate Eshna Kumar on September 17. Kumar was asked to mediate the dispute.The Tribunal also acted on creditors' apprehension that the company's assets could be siphoned off. It directed that no assets be parted with.The financiers seeking to revive the company were further directed to carry an inventory of all its assets to the mediation meeting and hand over copies to the creditors..Advocate Varsha Banerjee appeared for Unity Small Finance Bank..Senior Advocate Prasenjit Keswani, along with Advocates Rajat Malhotra, Aditya Vikram Singh and Shreya Chandhok, appeared for Bira..[Read Order]
