Chennai, Mar 8 (IANS): The Chennai bench of National Company Law Tribunal (NCLT) has granted additional 90 days for resolution of an insolvency case where the original successful resolution applicant failed to pay the dues and close the transaction.

In a case related to Orchid Pharmaceuticals Ltd, the NCLT on Thursday granted additional 90 days to the Resolution Professional (RP) and the Committee of Creditors (CoC) to search for fresh potential bidders for the insolvent pharmaceutical company.

The Chennai bench based its decision working on an order passed by the higher bankruptcy court, the National Company Law Appellate Tribunal (NCLAT), which wanted it to pass a suitable order in respect of the resolution case including fresh invitation for bids.

Apart from allowing an extension of 90 days for the insolvency resolution process of Orchid Pharmaceuticals, the bench also excluded the time between first issuance of "Expression of Interest" to take over Orchid and submission of the resolution plan.

Ingen Capital Group was approved as the successful bidder for Orchid Pharmaceuticals by the NCLT Chennai bench on September 17, 2018. However, it failed to submit Rs 1,000 crore within five days of the approval of the resolution plan.

It failed a second time when the RP and CoC of Orchid Pharmaceuticals approached NCLT and it directed Ingen to deposit one-third of the Rs 1,000 crore that was due to the financial creditors within the following five days of its order on October 10, 2018.

While Ingen claims that it was declined some additional information that it sought from the RP relating to debt towards J.M. Financial which made things difficult for it to raise funds and pay the amount, NCLT stated that there was no caveat in his resolution plan.