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.
About Shardul Amarchand Mangaldas & Co:
Shardul Amarchand Mangaldas & Co., founded on a century of legal achievements, is one of India’s leading full-service law firms. The Firm’s mission is to enable business by providing solutions as
trusted advisers through excellence, responsiveness, innovation, and collaboration. SAM & Co. is known globally for its exceptional practices in mergers & acquisitions, private equity, competition
law, insolvency & bankruptcy, dispute resolution, international commercial arbitration, capital markets, banking & finance, tax, intellectual property, data protection and data privacy, white collar
crime, technology law and infrastructure, energy and project finance. The Firm has a pan-India presence and has been at the helm of major headline transactions and litigations in all sectors, besides advising major multinational corporates on their entry into the Indian market and their business strategy. Currently, the Firm has over 800 lawyers including 182 Partners, offering legal services through its offices in New Delhi, Mumbai, Gurugram, Ahmedabad, Kolkata, Bengaluru, and Chennai.
For further information, please contact –
Ruchi Sikri
M: +91 9971649666
Email: Ruchi.sikri@amsshardul.com
Prerna Gagerna
M: +91 9971217153
Email: prerna@avianwe.com
