NCLAT gives APTRANSCO ‘one last chance’ to clear dues

NCLAT Chairperson Justice Mukhopadhaya and Judicial Member Justice Bansi Lal Bhat have granted ‘one last chance’ to Transmission Corporation of Andhra Pradesh (APTRANSCO), a Public Sector Undertaking (PSU), to settle its dues with Equipment Conductors & Cables Ltd (ECCL)..The application is listed on October 4 for final hearing..Operational Creditor ECCL had initiated insolvency proceedings against APTRANSCO in April 2018 at the Hyderabad Bench of NCLT. The debt pertains to work completed by ECCL in 2001, for an amount close to Rs. 70 crores. Pursuant to an arbitral award passed in favour of ECCL, the dispute has been subjected to prolonged litigation at Punjab and Haryana High Court, as well as Supreme Court..The NCLT however, in July, dismissed the said filing by ECCL noticing the ongoing dispute between the parties with respect to the amount that needs to be paid..An appeal was filed by ECCL against the NCLT order. The NCLAT, in its recent interim order, has said that “if appeal is allowed and Corporate Insolvency Resolution Process is initiated against APTRANSCO, the government undertaking may face trouble”. The Bench has also given the PSU a ‘last chance’ to settle its dues with ECCL, failing which it will pass “appropriate orders on merit”..In April this year, BHEL was dragged to NCLT by a supplier for its unpaid dues by the PSU. BHEL eventually paid the supplier and resultantly the application was withdrawn. Air India also faced similar proceedings earlier this year..S. Hariharan appeared for ECCL, the operational creditor..(Read the interim order)