NCLT junks Adani Ports plea for delayed Tuticorin coal plan

Time of India

13-05-2025

The Mumbai bench of the National Company Law Tribunal has dismissed an application filed by
Adani Ports
and Special Economic Zone to submit a delayed resolution plan for the closely held
Tuticorin Coal Terminal
. Instead, it said it will want more bidders/continue to evaluate the current resolution plan offered by Seapol.
The division bench of judicial member KR Saji Kumar and a technical member, Anil Raj Chellan, observed that more than four years have passed since the publication of EoI (Expression of Interest), and lenders have been considering many options for the revival of the company and resolving its insolvency.
As the debt-laden borrower, as acknowledged by the Adani group company, has shown signs of a turnaround, a broader set of investors may be interested in bidding for the asset, said the bench. At present, the lenders are evaluating a proposal by
Seapol Port
, the lone bidder left for the asset.
"During the arguments, the counsel for the applicant (
Adani Ports
) brought to our notice that the operations of the corporate debtor (Tuticorin Coal Terminal) have improved drastically during the CIRP period, and the corporate debtor has started generating profits now," observed the tribunal in its recent order. "Hence, we cannot ignore the changes in the economic conditions that would generate further interest by more participants than one."
Tuticorin Coal Terminal was admitted under the
Corporate Insolvency Resolution Process
(CIRP) in February 2020 after the company defaulted on dues of about ₹90 crore to
Bank of India
. Currently, the company has admitted liabilities of over ₹479 crore.
An email query to Adani Ports & SEZ remained unanswered till the time of filing the story.
Apart from Adani Ports & SEZ, other bidders such as Seahawk Lines, Seapol Port and Jindal Power had also shown interest in acquiring Tuticorin Coal Terminal through the
insolvency resolution
process.
In the case, appearing for Adani Ports & SEZ, Animesh Bisht, of Cyril Amarchand Mangaldas, argued that the company was part of the provisional and final list of bidders.
"Allowing the applicant (Adani Ports & SEZ) to submit a resolution plan for the corporate debtor would aid in value maximisation of the asset," argued Adani Ports & SEZ.
"Since no resolution plan has been received from Seahawk despite being allowed by this tribunal, the CoC is presently only considering one resolution plan, which has been submitted by Seapol," argued Adani. Therefore, the grant of reliefs to the applicant will ensure fair competition and would be in furtherance of the objective of the Code i.e., to maximisation of value of the assets of the corporate debtor," argued the company.
Shloka Dikshit of Chandhiok & Mahajan appeared for the resolution professional (RP) and argued that the CoC agreed to consider the applicant's resolution plan if the requested reliefs are granted by the tribunal.
"The respondent (RP) confirms that the CoC is willing to consider the plan of the applicant (Adani Ports & SEZ), subject to this adjudicating authority (
NCLT
) granting permission to the applicant," added the RP.