The appellate tribunal had rejected Triton EV’s application to consider its bid for AMW Auto Component Ltd. Triton EV is in seeking to submit its bid to acquire AMW Auto Components, where the lenders have already approved the resolution plan submitted by
Wheel Ltd (SSWL) and NCLT’s approval is awaited.
AMW Auto Component Ltd is a manufacturer of wheel rims for agriculture and commercial and passenger vehicles and has the largest single steel wheel rim manufacturing plant in the country.
On September 1, 2020, the Ahmedabad bench of the National Company Law Tribunal (NCLT) admitted the company under the Corporate Insolvency Resolution Process (CIRP). On September 21, 2021, the Committee of Creditors (CoC) approved the resolution plan submitted by the Steel Strips Wheel in the absence of any other viable resolution plan.
On December 13, 2021, Triton EV approached the lenders via a joint resolution plan for both AMW Motors Ltd and its subsidiary AMW Auto Component Ltd. The bidder also proposed to purchase the land parcel belonging to Asia Motorworks which has been mortgaged to the lenders of both companies.
On December 18, 2021, the lenders decided that since the resolution plan submitted by SSWL was already approved by them and pending NCLT’s approval, they can consider the Triton EV’s plan only if the tribunal permits them to do so. Subsequently, the tribunal in its order of January 18, 2022, clarified that the lenders have the discretion to decide on the new plan if it finds in its discretion that the said plan may bring maximisation of value.
However, the SSWL challenged the NCLT’s ruling in the appellate tribunal. The NCLAT in its order of April 18, 2022, set aside the NCLT’s order in favour of SSWL and observed that there was no valid reason for the NCLT to permit the CoC to consider the plan of the Triton EV.
Now, Triton EV has approached the Supreme Court to set aside the appellate tribunal’s order so that the lenders can consider its plan for AMW Auto Component.
“NCLAT erred in noting that there is no bar under the Code (IBC) for a CoC to exercise its commercial wisdom and the fact that the Appellant’s (Triton EV) Joint Resolution Plan if permitted, would result in revival of not only the corporate debtor but its sister concerns as well as in overall interests of all stakeholders…” said the Triton EV in its plea in the Supreme Court.
Triton EV specialises in manufacturing lithium battery cells and electric vehicle controllers in addition to long-range electric vehicles. The company manufactures electric SUVs, sedans, semi-trucks, rickshaws and defence EVs in the US, according to the company website.
While Chandigarh-based SSWL is a manufacturer of automotive wheels – both under the steel and alloy category. According to the company’s website, it is in a long-term strategic partnership with
and South Korea’s Kalink Co Ltd.