New Delhi: Hindustan Oil Exploration Company (HOEC)s attempt to contest implementation of the Resolution Plan completed in September was struck down for the third time by NCLTs Allahabad Bench on December 21.
This a series of repeated appeals made by HOEC since 2018 which have been repeatedly dismissed by the NCLAT.
HOEC continued to repeatedly approach the judiciary system to obtain a favourable result that would move JEKPL closer towards liquidation. This would then allow HOEC to gain control of its participating interest in Kharsang Field at no cost through one of its offshore subsidiaries.
NCLAT in March dismissed HOEC’s petition for the second time against the order of the Allahabad Bench of NCLT in February.
This order also declared Invenire Energy as the successful resolution applicant in the second round of bidding round that concluded in June 2019. The second round of bidding was undertaken due to the protest lodged by HOEC disputing the decision of the NCLT Allahabad Bench to award Invenire Energy as the successful resolution applicant in December 2017. During the recent and third dismissal of its appeal, the NCLT stated that the cause of the dismissal was due to the lack of any legal standing.
HOEC has been filing multiple appeals to try to gain a controlling interest in Kharsang Field go back as far as 2017 when JEKPL an oil and gas holding interest in prolific Kharsang Oil Field, located in North East, was referred to the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC).
Its Committee of Creditors (CoC) included State Bank of India, EXIM, and Central Bank of India and it had no operational creditors. Two companies, one a listed oil company, Hindustan Oil Exploration Company (HOEC) and a private equity SPV, Invenire Energy, emerged as interested parties.
Final bids were invited for JEKPL in December 2017 with Invenire Energy emerging as the successful resolution applicant, with endorsement by the CoC for more than the qualifying the majority. NCLAT, Allahabad Bench, passed the award in December Dec 2017 declaring Invenire Energy as the successful resolution applicant.
Post endorsement by the CoC, the financial creditors comprising of State Bank of India, EXIM and Central Bank of India have received the entire consideration of Rs 123 crore and 100 per cent shareholding of JEKPL has been transferred to Invenire Energy on September 30, 2020, and its nominees have also been appointed as Directors on the Board of JEKPL.