A two-member bank noted that the resolution of the West Gujarat Expressway is in a “critical phase” and is expected to be completed by March 31, 2022.
Insolvency Court NCLAT has extended the implementation date of a contract termination letter issued by NHAI to IL&FS group company West Gujarat Expressway Ltd for a project to April 1, 2022.
A two-member bank noted that the resolution of the West Gujarat Expressway is in a “critical phase” and is expected to be completed by March 31, 2022.
West Gujarat Expressway Ltd had argued for quashing the denunciation issued on 21 December 2021 by the National Highways Authority of India (NHAI) for a highway project. NHAI issued the notice of termination after finding that the concessionaire defaulted on the concession agreement and took possession and control of the project.
The National Company Law Appellate Tribunal (NCLAT) said, “We are under no obligation to settle the actual dispute between the parties or return any conclusion as to whether the termination notice was issued on sufficient grounds or not.” However, according to the affidavit filed on behalf of Center, it is clear that IL&FS Group Company’s resolution process is in its final stages and likely to be completed before March 31, 2022.
“…given that the resolution of IL&FS group companies, including the applicant, is at a critical stage and may be completed by March 31, 2021, we further recommend that the December 21, 2021 termination notice issued by NHAI, will be implemented from April 1, 2022,” said NCLAT bank led by chairman Justice Ashok Bhushan.
NCLAT executive came across a plea filed by the West Gujarat Expressway praying for overturning the National Highways Authority of India (NHAI) shutdown notice on December 21, 2021.
It had entered into a concession agreement with NHAI on March 22, 2005 for the conversion of the Jetpur-Gondal-Rajkot bypass section of NH-8B into a four-lane highway with access control with service lanes along certain sections and reinforcement of the existing lanes in Gujarat, based on build-operate-transfer (BOT), with a concession period of 20 years.
West Gujarat Expressway completed the construction works in the year 2008 for which a certificate of completion was issued on 14 August 2008.
The NHAI has made various notices to the Company regarding compliance with the security provisions provided for in the Agreement and to remedy any breach found from time to time.
This post IL&FS West Gujarat Expressway entity to receive NCLAT assistance in case of NHAI project termination
was original published at “https://www.financialexpress.com/industry/ilfs-entity-west-gujarat-expressway-gets-nclat-relief-in-nhai-project-termination-case/2463368/”
