The National Company Law Tribunal (NCLT), Chennai has rejected a plea by M.K. Rajagopalan, managing director of MGM Healthcare, against selection of ASG Hospital as a winning bidder to buy Vasan Health Care Pvt. Ltd. under the corporate insolvency and resolution process.
The committee of creditors of Vasan Health Care has approved Rajasthan-based ASG Hospital’s ₹520-crore bid for Vasan Health Care, with 97.9% voting in favour. The plan is pending before NCLT for its approval.
Mr. Rajagopalan in his personal capacity was one of the bidders in the process. Dr. Agarwal’s Health Care Ltd. and iLabs India Special Situations Fund were among the other bidders.
In his plea, Mr. Rajagopalan had alleged that the approved resolution plan of ASG was in violation of Insolvency and Bankruptcy Code regulations.
The NCLT, however, ruled that the plea raised by Mr. Rajagopalan is rejected as not tenable in law or on facts.
In 2017, the NCLT ordered the commencement of insolvency proceedings against Vasan Health Care on a petition filed by Alcon Laboratories (India) Pvt. Ltd., one of its suppliers. This was the first case to be admitted by NCLT, Chennai, under the Insolvency and Bankruptcy Code, 2016
According to information available on Vasan Eye Care’s website, its financial creditors have a claim of ₹1,368.90 crore. With the other creditors included, the total admitted claims stand at over ₹2,000 crore.
