Centre set to wait for NCLAT ruling for Pawan Hans sale, hearing on Sept 1

The Centre will wait for the National Company Law Appellate Tribunal’s (NCLAT’s) observations and order on the appeal filed by the winning bidder of Pawan Hans. Only after this would it decide whether the public sector undertaking (PSU) will be handed over to the private player or fresh bids would be invited.

The government’s decision is based on the recommendation of its transaction adviser. It said the Centre should wait for the order on the appeal filed by the successful bidder of Pawan Hans-Almas Global Opportunity Fund. The next hearing of the case is on September 1.

Almas Global had moved the NCLAT after the government had put on hold the handover of Pawan Hans.

The Centre had selected Star9 Mobility, a consortium of Big Charter Pvt Ltd, Maharaja Aviation Pvt Ltd and Almas Global Opportunity Fund SPC as the winning bidder for Pawan Hans. This came after the consortium placed a bid of Rs 211 crore for the PSU that provides helicopter and aero mobility services.

Post selecting the consortium as the successful bidder, it was found that Almas Global was prosecuted by the National Company Law Tribunal (NCLT) for not paying up after emerging as the successful resolution applicant under the insolvency process for a Kolkata-based power transmission company EMC Ltd.

The government had then withheld issuing a Letter of Award (LoA) to the winning consortium, applying brakes on the second such privatisation after Central Electronics. This firm’s bid also met a similar fate with its winning bidder having a pending case in the NCLAT.

SBI Capital Markets, the transaction adviser of Pawan Hans, has suggested to the inter-ministerial group to wait for the proceedings on the appeal filed by Almas Global before deciding on whether to go ahead with the sale or re-invite bids, an official said.

On May 20, Almas Global filed an appeal in the NCLAT against the insolvency professional.

It had then sought the dissenting creditor of the resolution plan of EMC and LIC Housing Finance to be included as a respondent to the case.

In the case hearing on August 5, LIC Housing had sought two weeks to file its reply to the court, and it was granted. The next hearing of the case is scheduled for September 1.

After the government’s plan to privatise two PSUs was halted due to legal issues, the Centre introduced changes in the privatisation process.

It sought a legal declaration from the interested bidders that they are not convicted by any court, indicted or received any adverse order for a grave offence.

Wait And Watch

• Transaction adviser of Pawan Hans has told the inter-ministerial group to wait for proceedings on the appeal filed by Almas Global
• Almas Global filed an appeal at NCLAT against insolvency professional, LIC Housing Finance of EMC
• Almas Global-backed consortium had emerged winning bidder for Pawan Hans in April after placing Rs 211-crore bid
• After sale of 2 PSUs was halted, the Centre introduced changes in the privatisation process