Chennai: In an unprecedented order, a tribunal has warned the Ingen Capital’s CEO and the executive VP of contempt proceedings and arrest if they failed to respond to a showcause notice in three weeks starting March 1. Ingen Capital was the successful applicant for the Chennai-based Cephalosporin drug maker Orchid Pharma last September. The contours of the deal envisaged Ingen investing 1,000 crore into Orchid. Of this, Ingen was to pay Rs 334 crore upfront. Since the investor, continued to buy time and sought postponement of financial obligations, an NCLT bench in Chennai impugned the winning bid order on November 2 and also annulled the process last Thursday.Ingen, in the meanwhile, moved the NCLAT against the impugned order and also sought the tribunal’s help to access more documents.
“On January 24, by way of last chance, we allowed the appellant (Ingen) to state whether they unconditionally agree to deposit at least 1,000 crore with the registrar, NCLT, Chennai, without prejudice to the rights and contentions of the appellant and without compromising with the ‘resolution plan,” the NCLAT said.
When the counsel for Ingen withdrew the case, the tribunal said, “We allow Nishtha Chaturvedi to withdraw the vakalatnama and direct Umesh Bhatia (CEO of Ingen) and Harish Bhatia (executive VP of Ingen) to file showcause reply within three weeks, failing which this appellate tribunal may initiate a contempt proceeding against them and may issue bailable warrant of arrest,” the order passed last Friday said and posted the case for orders on April 2.
Orchid Pharma knocked the doors of NCLT in Chennai after its ballooning debt resulted in defaults on interest payments. A consortium of 24 banks have lent more than 3,200 crore to Orchid. Annulling the order to hand over Orchid to Ingen, the NCLT Bench in Chennai ordered restart the process all over again and granted 105 days to complete the process The Bench quoting the Resolution Professional said, Divi’s Laboratories, Gland Celsus Biochemicals and Fidelity Trading Corporation have evinced preliminary interest to take over Orchid Pharma. Other bidders who are keen to acquire Orchid includes financial investors, Everstone, Piramal Capital, Aion Capital, ART Capital and Finquest group, the Bench said.