NCLT Hearing - Update
Mercantile Ports & Logistics Limited provided an update on the National Company Law Tribunal hearing concerning Karanja Terminal & Logistics Private Limited, where the company's counsel presented a detailed chronology of the One Time Settlement process and Prudent ARC Limited's involvement, arguing that Prudent's intervention breached the agreed process after KTLPL successfully completed the Swiss Challenge and made substantial payments. The hearing was adjourned and will continue on August 14, 2026, with MPL maintaining its position that the process was deliberately frustrated to favour another party.
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Mercantile Ports & Logistics Limited (AIM: MPL) provides an update following the hearing before the National Company Law Tribunal ("NCLT"), Mumbai Bench, on 7 August 2026 in relation to the Corporate Insolvency Resolution Process of Karanja Terminal & Logistics Private Limited ("KTLPL").
At the hearing, counsel for MPL commenced its substantive submissions by setting out for the Tribunal the detailed chronology surrounding KTLPL's One Time Settlement ("OTS") process and the subsequent involvement of Prudent ARC Limited ("Prudent").
MPL's counsel submitted that this chronology demonstrates that Prudent was permitted to intervene while KTLPL's OTS remained in force, notwithstanding that KTLPL had successfully completed the lender-led Swiss Challenge process, had been declared the successful bidder and had made substantial payments pursuant to the OTS. The Company continues to maintain that this was a clear breach of the agreed process.
Counsel further submitted that the sequence of events, including the subsequent termination of the OTS and changes to the process which followed, supports MPL's longstanding contention that the process was deliberately frustrated and ultimately operated to favour another party.
It was not possible to conclude the hearing on 7 August and MPL's submissions will continue at the next hearing, which has been listed for 14 August 2026.
MPL will provide further updates to shareholders as appropriate.
Pavan Bakhshi, Managing Director of Mercantile Ports & Logistics Limited, commented:
"We have been fighting for nearly a year to save our asset from what we believe was a predetermined outcome orchestrated by the banks and Prudent. The chronology now being put before the Tribunal shows why we have held that position from the beginning.
"This has been a challenging time for the Company and its shareholders, but we have not given up. We now have the opportunity to put the full chronology and supporting evidence before the Tribunal, and we will continue to fight vigorously to protect our asset and the interests of all MPL shareholders."
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