Tata Steel Long Products & Vedanta Bid for Incab Industries
Strategic Research Institute
Published on :
22 Sep, 2021, 5:28 am
According to reports in local media, Tata Steel Long Products Limited, Vedanta Limited and Delhi based real estate firm One City Infrastructure Private Limited have submitted their expression of interest in response to a notice issued by Kolata bench of National Company Law Tribunal appointed Resolution Professional of Incab Mr Pankaj Kumar Tibrewal for 100 year old cable maker Incab Industries. The expression of interest submitted by the three entities is subject to scrutiny by the Resolution Professional. The last day for submission of the expression of interest was September 16.
The next hearing of NCLT's Calcutta bench on Incab Industries is slated on November 8.
Setup in 1920, Incab Industries was a prominent manufacturer of electric cables in India. In the mid 1990s, Malaysian promoter Leader Universal Holdings Berhad took over the company, but it started suffering losses and slid deeper in the red. Ultimately it had to be referred to the Board for Industrial and Financial Reconstruction in 1999. Later, the case was also taken up for hearing at the Appellate Authority for Industrial and Financial Reconstruction. However, both the statutory bodies were dissolved on December 1, 2016 paving the way for National Company Law Tribunal, which helps in the revival process of sick industries.
National Company Law Appellate Tribunal recently directed that the Calcutta Bench of the National Company Law Tribunal appoint a new RP who would collate all the claims submitted by the creditors and form a committee of creditors. However, Kamla Mills and one Fasqua Investment Pvt Ltd would not be part of the CoC. The NCLT Calcutta had ordered liquidation of Incab, which was set aside by the NCLAT.
Incab Industries has a number of corporate and non-corporate entities with outstanding liabilities of crores of rupees. Many companies have submitted their claims in the Expression of Interest issued by Resolution Professional. The claimants include Tata Steel, Fireworth Financial Services Ltd, Bhid Plastic Industries, ICICI Bank Ltd, Sakshi Suppliers, Classic Co-Operative Housing Society, Pranav Catering Services, Pegasus Estates Re-Construction Ltd, Life Insurance Corporation of India, Oriental In Source Company Limited, United India Insurance Company Limited, Punjab National Bank, National Insurance Company Limited, Atul Sethia, Dungri Devi Sethia & Sunita Sethia, Tarun Sethia among others.
Incab Industries has immovable properties in many states across the country. Apart from the Jamshedpur plant, it has corporate offices in Kolkata, a plant in Pune and also the company’s office in Connaught Place, New Delhi. In the year 1920, 171 acres of land was allotted by Tata Steel to Jamshedpur-based Incab Industries for running the plant, including staff quarters, hospital and community centre. The matter is pending in the Jharkhand High Court over who is the owner of Incab Industries.