NCLT directs to conduct valuation of shares held by a wholly owned foreign subsidiary company of Corporate Debtor, which were sold by SBI Singapore – Mr. Shantanu Prakash Vs. Mr. Mahendar Singh Khandelwal, RP, Educomp Solutions Ltd. – NCLT New Delhi Bench Court-II
September 6, 2023
In this case, Ex-Director of Educomp Solutions Limited, Corporate Debtor raised the issue that shares of The Learning Internet Inc. (TLI) held by Educomp Asia Pacific Pte Limited (a wholly owned subsidiary of Corporate Debtor and also gone into Liquidation as per order passed by High Court of Singapore) has been sold by SBI, Singapore at lower value.
NCLT New Delhi Bench Court-II held that:
(i) The RP shall approach IBBI for the appointment of Registered Valuers to do the valuation of shares of The Learning Internet Inc. owned by the Educomp Asia Pacific Pte Limited and pledged with State Bank of India, Singapore.
(ii) If the valuation done by the two valuators or third valuator so appointed, as the case may be is found more than the value of USD 7.1 million for which the shares were sold on 03.09.2021, the claim of SBI Singapore against the Corporate Debtor would stand reduced to the equal or that extent.
(iii) The CIRP qua the Educomp Solution Limited (CD) would continue unhindered and uninfluenced by the aforementioned direction (a & b) The secured financial claim of the State Bank of India (Singapore) qua the CD would be subject to the outcome of the valuation result/report.
