17 November 2021
Matter: Amanat Randhawa Hotels Pvt. Ltd. v. Shashi Kant Nemani and Ors
Order Dated: 07 October 2021
Summary:
In the present case, the NCLT, New Delhi Bench dismissed an application that was filed by an unsuccessful resolution applicant seeking directions to consider its Expression of Interest (EoI). This application was filed after another resolution plan was already approved by the CoC and an application seeking final approval of the resolution plan by the NCLT was pending
This order of the NCLT was appealed before the NCLAT where the unsuccessful resolution applicant contended that the invitation of EoI was not widely published by the resolution professional as required under the Code, and that it had sent an e-mail to the resolution professional for consideration of its plan, however, there was no response to the same. The NCLAT observed that a resolution plan has already been approved by the CoC by 100% (one hundred percent) voting share after the consideration of 9 (nine) plans presented before it. Moreover, the NCLAT observed that the appellant had never participated in the EoI. Based on this, the NCLAT opined that granting of any relief to the unsuccessful resolution applicant would delay the timelines under the Code and upheld the NCLT’s order refusing to entertain any late unsolicited bids. NCLAT held that once a resolution plan is approved by the majority of the CoC as provided under the Code, no fresh plans can be entertained in the intervention of an already approved resolution plan.
For further information, please contact:
Souvik Ganguly, Partner, Acuity Law
al@acuitylaw.co.in
