NCLT Hearing - Update
Mercantile Ports & Logistics Limited has concluded final oral submissions before the National Company Law Tribunal regarding its subsidiary, Karanja Port, with written submissions due by October 8, 2026, and judgment expected thereafter. The company contends it was denied a genuine opportunity to repay outstanding debt and retain the asset it developed, alleging collusion between Prudent ARC and lenders to prevent a One-Time Settlement and facilitate asset transfer to a predetermined party. MPL asserts this conduct has undermined the process, which has lasted over a year, despite repeated attempts to fully repay lenders.
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Mercantile Ports & Logistics Limited (AIM: MPL) announces that final oral submissions in rejoinder in the proceedings concerning its subsidiary i.e. Karanja Port were made before the National Company Law Tribunal (“NCLT”) on 24 September 2026.
The NCLT has directed all parties to file their written submissions by 8 October 2026. The judgement on the challenge by Company to the arbitrary rejection of its 12 A proposal is expected soon thereafter following completion of that process.
During the hearing, MPL’s legal counsel made clear that the Company was never provided with a genuine and bonafide opportunity to pay the outstanding debt and retain the asset that it financed, developed and built.
MPL’s submissions also set out its case that Prudent ARC effectively colluded with the lenders to prevent MPL’s One-Time Settlement (“OTS”) from being completed. MPL further submitted that Prudent ARC worked collusively with the lenders through a process intended to transfer the asset to a predefined party.
MPL maintains that this conduct, and the repeated obstruction of its attempts to repay the debt in full, has destroyed the sanctity and credibility of the process.
Had the lenders provided a clear and enforceable mechanism through which payment could be made, the outstanding debt would have been paid by now. Instead, the Company has been forced to contest a process lasting more than a year while repeatedly seeking the opportunity to repay the lenders in full.
MPL will provide a further update once the written-submission process has concluded or the NCLT delivers its judgment.
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