The lenders of Amtek Auto, led by Union Bank of India, have moved the Supreme Court against Deccan Value Investors for exercising ‘force majeure’ clause in its resolution plan.
The lenders have charged contempt of court on DVI, as the Supreme Court has already rejected a petition by it to review the resolution plan in light of the Covid pandemic.
Reacting to the development, DVI said it submitted the resolution plan for Amtek Auto in Januaryin good faith and with a detailed strategy to revive Amtek’s fortunes.
In March, Covid-19 triggered an immediate and accelerating deterioration in industrial activity across sectors. The impact was severe on the auto sector and Amtek’s financial position worsened quickly, rendering DVI’s commercial assumptions for the company redundant, it added.
DVI’s resolution plan states that any material impact on Amtek’s performance due to a pandemic would allow DVI to exercise force majeure.
In addition, DVI