SC Orders Interim Stay On National Company Law Appellate Tribunal’s Order On Orchid Pharma’s Resolution Process

The Supreme Court has ordered an interim stay on the National Company Law Appellate Tribunal’s (NCLAT’s) ruling on the resolution of debt-ridden Orchid Pharma.

It may be recalled that in November, the NCLAT had set aside the National Company Law Tribunal’s (NCLT’s) approval of a resolution plan by the Gurgaon-based Dhanuka Laboratories for Orchid.

It had sent the matter to the NCLT, observing that it quoted an amount below the liquidation value and could not be approved.

The State Bank of India, which is an important member in the Committee of Creditors (CoC), had filed the appeal with the Supreme Court to set aside the NCLAT order, alleging that the appellate tribunal had erred in overriding the commercial wisdom of the CoC.

A majority of the committee members had approved Dhanuka’s plan.

The NCLAT passed the order based on an appeal by Accord Life Spec, part of the Rs 1,700-crore Accord Group, whose resolution plan was rejected by the NCLT, Chennai, while approving Dhanuka’s