The Committee of Creditors (CoC) and Resolution Professional (RP) of SKS Power Generation have told the Supreme Court that the resolution plan submitted by Sarda Energy and Minerals (SEML) was approved by 100 per cent voting in the exercise of its commercial wisdom and that that all resolution applicants were treated equally.
Earlier, Torrent Power, an unsuccessful resolution applicant, alleged that SEML was permitted to convert a deferred payment of ₹240 crore into an upfront payment after the negotiation process had concluded and the bidder was allowed to increase its margin money for bank guarantees from ₹104 crore to ₹180 crore post-negotiation.
Responding to the allegations, both CoC and RP, filed a detailed counter affidavit justifying their decision and was arrived through a rigorous evaluation process rooted in commercial wisdom.
Counter affidavit
The CoC clarified that the ₹240 crore in question was not a modification but the net present value of a deferred payment originally outlined in the resolution plan. It maintained that the option to pay this amount upfront was always part of the plan and did not constitute a post-negotiation change.
Regarding the increase in margin money for bank guarantees, the CoC submitted that the increase in margin money was a clarification, not a modification.
The CoC said that such clarifications are routine in resolution processes to ensure all aspects of the plan are fully understood and evaluated. It added that similar clarification requests were sent to all resolution applicants, including Torrent, to maintain fairness in the process.
The RP, in his counter affidavit, refuted Torrent Power’s claims of procedural irregularities.
With the case scheduled for a hearing on Tuesday, both the CoC and the RP have urged the Supreme Court to dismiss Torrent Power’s appeal as lacking merit and legal grounding.
According to the RP, the option to convert the deferred payment into an upfront payment and the clarification regarding the margin money for bank guarantees were embedded in the original resolution plan. He reiterated that these elements were not modifications introduced after the fact but were consistent with the plan’s initial design.