NCLT Hearing - Update

Mercantile Ports & Logistics Ltd

25 June 2026

 

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Update

On 10 June 2026, Mercantile Ports & Logistics Limited (AIM: MPL) announced that its application challenging the decision of the Committee of Creditors ("CoC") which rejected the promoters' Section 12A proposal and approved the resolution plan relating to Karanja Terminal & Logistics Private Limited ("KTPL") could not be heard on 8 June 2026.

The Company has now been informed that the matter is scheduled to be heard before the National Company Law Tribunal ("NCLT"), Mumbai Bench, on 1 July 2026.

At the hearing, the Company intends to highlight what it considers to be one of the most significant developments to emerge from the lenders' and Prudent ARC's own filings.

Those filings confirm that, while MPL's sanctioned One Time Settlement ("OTS") remained active, as MPL had already been declared the successful bidder and pursuant thereto had deposited approximately ₹43 crore (approximately £3.8 million) under the terms of the sanctioned settlement, Prudent ARC submitted a fresh binding offer of ₹520 crore (approximately £46 million) to the consortium of lenders. The filings further confirm that Prudent ARC's revised offer was submitted and considered by the lenders before MPL's OTS was illegally annulled.

The Company and its advisers believe the significance of these admissions is considerable.

MPL proceeded throughout this period on the basis of the binding settlement and was ready and willing to make payment as per the timelines prescribed by the settlement. However, the filings now reveal that a competing proposal had already been submitted and was being actively considered even before the OTS was terminated.

MPL had been declared the successful bidder, had deposited substantial funds and remained within the agreed payment period extending to 30 September 2025.

The chronology now emerging raises a fundamental question: was MPL ever intended to be allowed to complete the sanctioned settlement process.

The Company believes these disclosures materially alter the factual understanding of the events leading to the termination of the OTS and the subsequent transfer of the debt.

Had these facts been known and disclosed at the time, including during proceedings before the Delhi High Court and other proceedings, the Company has been advised that it is likely that the outcome would have been in the Company's favour.

Pavan Bakhshi, Managing Director of MPL, commented:

"For the first time, the lenders' and Prudent ARC's own filings reveal that while MPL was looking to make the payment  and working towards completion of a sanctioned settlement, a competing proposal from Prudent ARC had already been submitted and was being considered by the lenders.

"MPL had won the Swiss Challenge process, deposited approximately £3.8 million pursuant to that process and remained within the agreed payment timetable. Yet the OTS was subsequently terminated and the debt ultimately transferred to the very party that had lost in the original process.

"These admissions raise serious questions regarding transparency, fairness and whether MPL was ever afforded a genuine opportunity to complete the settlement. We look forward to presenting these matters before the NCLT on 1 July.

The Company will continue to pursue all available legal remedies to protect shareholder interests and recover value for stakeholders."

A further announcement will be made following the hearing or upon any material developments.

Enquiries:

MPL	c/o Cavendish [phone]
Cavendish (Nomad and Broker)	Stephen Keys [phone]

 

END