Author DefaultONE PAGE # 19 – In the matter of M/s Sri Guruprabha Power Ltd
Commercial Wisdom of COC prevails. Decision of COC cannot be interfered, in as much as Resolution Plan was submitted after the last date was over, etc.
#Courts: NCLT Hyd & NCLAT Chennai Bench AT# 11/2021 Dt 15.03.2021
1. Facts of the Case:
a. Appellants (Resolution Applicant) challenged dismissal of IAs filed by them before, NCLT, seeking NCLT to interfere with the decision of COC opting for liquidation of the CD and to give a direction for approval of its Rplan by the COC, submitted after the last date for CIRP was over.
2. Discussions by NCLAT:
a. NCLAT starts with “How the instant appeal is per se maintainable in the teeth of ingredients of Sec 33(2) coupled with judgment of SC in Kalpraj Dharmshi & Anr V Kotak Investment Advisors Ltd & Anr”?
b. Then, the Appellant sought permission to withdraw the instant Appeal.
3. Case Laws:
a. Kalpraj Dharmshi & Anr V Kotak Investment Advisors Ltd & Anr (SC):
Para 157:After the Rplan was approved by NCLT Kalpraj begun implementing the Rplan. NCLAT without giving stay; after a gap of 5 months & after various steps were taken by Kalpraj, rejected that Rplan approved by COC & NCLT. SC held that NCLAT acted excess in jurisdiction in interfering with the conscious commercial decision of COC.
Para 158: Decision of NCLAT does not stand scrutiny of law and the subsequent approval of KIAL by COC obliging NCLAT’s order becomes nonest in law, for it was only to abide by the directions of NCLAT. Decision of COC in exercise of commercial wisdom & approved by NCLT, will prevail. NCLAT is not justified in interfering with the stated decision taken by COC.
Para 159: Appeals filed by Kalpraj and Deutsche bank deserve to be allowed. Order passed by NCLAT is quashed and set aside and orders passed by NCLT are reserved and maintained.
4. Judgment:
a. At the request of Appellant, NCLAT dismissed the Appeal as withdrawn and closed all the connected IAs with no costs.
b. NCLAT also upheld the orders by NCLT in the IAs “that the direction sought for to interfere with the decision of the COC cannot be considered in as much as Resolution Plan was submitted after the last date was over etc.”
Manik Tanwar