The National Company Law Appellate Tribunal has directed the Centre to take action against US-based investor Ingen Capital Group LLC, its managing director and other directors for not implementing a resolution plan for Chennai-based Orchid Pharma, according to a Business Standard report.
The order comes after a plea was filed by Ingen Capital against Orchid Pharma's resolution professional (RP) with the appellate tribunal.
An NCLAT bench comprising Justice S J Mukhopadhaya and Justice Bansi Lal Bhat directed the Centre through the Ministry of Corporate Affairs to take appropriate steps, the report said.
“If the appellant (Ingen Capital) has no office in India then the Central Government through the Ministry of Corporate Affairs may take up the matter with USA, where the appellant company is situated,” the order said.
The appellate tribunal ordered Ingen Capital to deposit Rs 10 lakh in favour of the Committee of Creditors (CoC) within 30 days, which the investor failed to do so.
The tribunal issued a show cause in an order on 1 February 2019 to Ingen Capital’s directors Umesh Bhatia and Harish Bhatia, stating that appropriate action would be taken against them for failing to pay th deposit for Orchid Pharma's resolution plan, said the report.
In an order dated 1 March, the NCLAT asked the investor to file a reply to the show cause within three weeks, failing which the appellate tribunal would initiate contempt proceedings against them and may issue bailable warrant of arrest.
The NCLT, central government and its agencies as well as the Ministry of Corporate Affairs were made respondents to the appeal.
The investment firm had presented a resolution proposal of Rs 1,490 crore for Orchid Pharma, which was approved by the NCLT in September 2018.
However, after Ingen Capital failed to infuse the promised capital in the stipulated time, the NCLT on 28 February had cancelled the resolution plan of the firm.
Orchid Pharma’s resolution professional again invited expressions of interest from potential investors. Today is the last day for interested parties to submit their bids.
The RP said he had received emails from Divis’ Laboratories, Gland Celsus Biochemicals and Fidelity Trading Corporation. It had also received oral enquiries from ART Capital, Everstone Group, AION Capital, Piramal Capital and Finquest Group.
The drugmaker has a total debt of Rs 3,200 crore which it owes to a consortium of 24 banks.
Orchid Pharma is among the 28 large corporate defaulters in the Reserve Bank of India’s second list of debt-laden companies that were referred to the Chennai bench of the NCLT in August 2017