Heated NCLT debate raises questions about INCAB’s financial creditors

Mail News Service

Jamshedpur, July 15: In a National Company Law Tribunal (NCLT) hearing in Kolkata, the case of Jamshedpur-based cable company INCAB took a dramatic turn as serious allegations were raised about the legitimacy of its financial creditors.

Akhilesh Srivastava, presenting arguments before NCLT members Arvind Devanathan and Bidisa Banerjee, claimed that the so-called financial creditors, including Kamala Mills Limited, Fasqua Investment Private Limited, Pegasus Asset Reconstruction Company, and Tropical Ventures, had not actually provided any loans to INCAB.

Srivastava argued that INCAB’s original creditors – ICICI Bank, Axis Bank, and Citi Bank – had sold their non-performing assets (NPAs) to these entities. He further contended that since INCAB was closed from 1993 to 1996, all loans had become NPAs by 1992 and were extinguished by 1996, making them invalid for claims in 2018 when the petition was filed.

The debate also touched upon the validity of the committee of creditors, the role of the interim resolution professional, and questions about Vedanta’s alleged resolution plan. Srivastava raised concerns about the management of INCAB, suggesting that Ramesh Ghamandiram Gowani and his associates had improperly taken control of the company.

Adding another layer of complexity, Srivastava pointed out that while the alleged creditors are claiming Rs. 4000 crores, a Delhi High Court order from January 2016, later approved by the Supreme Court, had fixed INCAB’s total financial liability at Rs. 21.63 crore.

The NCLT hearing ended inconclusively, leaving many questions unanswered about the true financial state of INCAB and the legitimacy of the claims against it. The case continues to be closely watched by industry observers and stakeholders.