Shardul Amarchand Mangaldas & Co. advises the Committee of Creditors of Metalyst Forgings Limited

July 5, 2024

Shardul Amarchand Mangaldas & Co. advised the committee of creditors (CoC) in the corporate insolvency resolution process of Metalyst Forgings Limited (Metalyst), a subsidiary of Amtek Auto Limited.

Metalyst was admitted into corporate insolvency resolution process under the provisions of the Insolvency and Bankruptcy Code, 2016 (Code) in December 2017, following which, the CoC of Metalyst approved by a majority vote, a resolution plan submitted by Deccan Value Investors LP and DVI PE (Mauritius) Ltd. (DVI) in respect of Metalyst in terms of the Code. However, subsequently DVI sought to withdraw the resolution plan which was pending approval of the Adjudicating Authority (NCLT).

The NCLT and NCLAT allowed the withdrawal. This was challenged by the CoC of Metalyst (represented by SAM) along with the resolution professional of Metalyst, all the way up till the Supreme Court. The long pending litigation was eventually concluded with the Supreme Court passing an order in March 2024, inter alia, holding that the withdrawal of the resolution plan by DVI was illegal, and approving the resolution plan for the purposes of effective implementation.

The recent decision of the Supreme Court has further added to the jurisprudence regarding resolution applicants not being allowed to withdraw resolution plans post approval by the CoC, as earlier laid down by the Supreme Court in Ebix Singapore Private Ltd. v. Committee of Creditors of Educomp Solutions Ltd.

The team led by Anoop Rawat, Partner; Saurav Panda, Partner; Shreyas Gupta, Principal Associate and Maanvi Jain, Associate assisted in advisory during the corporate insolvency resolution process, review and negotiations on the resolution plan and the associated issues, as well as in the implementation of the resolution plan.

Misha, Partner; Meghna Rajadhyaksha, Partner; Siddhanth Kant, Partner; Rishabh Jaisani, Counsel; Nikhil Mathur, Principal Associate and Siddhant Marathe, Associate assisted in the litigations at NCLT, NCLAT and Supreme Court.

Rohan Jain, Partner; Kshitij Arora, Principal Associate and Shrutika Lakhotia, Associate assisted in the corporate compliances pertaining to the implementation of the resolution plan.