After adoption of Swiss Challenge Method to find out the best plan one Resolution Applicant cannot be allowed to submit a Revised Resolution Plan – Jindal Stainless Ltd. Vs. Mr. Shailendra Ajmera, RP of Mittal Corp Ltd. & Ors. – NCLAT New Delhi
NCLAT set aside the impugned order of NCLT and held that there can be no fetter on the power of the CoC to cancel or modify any negotiation with the Resolution Applicant including a Challenge Process but it is the wisdom of the CoC to take a decision in that regard. CoC, in the facts of the present case, did not take any decision to disregard the Challenge Process completed in 13th CoC meeting held on 15.07.2022 and it decided to vote on the plan which voting process has begun. Hon’ble Supreme Court judgment in Ngaitlang Dhar Vs. Panna Pragati Infrastructure Pvt. Ltd. & Ors. (2021) ibclaw.in 175 SC fully supports the case of the Appellant that after adoption of Swiss Challenge Method to find out the best plan one Resolution Applicant cannot be allowed to submit a revised plan. It is well settled that the timeline in the IBC has its salutary value and it was the wisdom of the CoC which decided to vote on the Resolution Plan after completion of Challenge Process and not to proceed to take any further negotiation or further modification of the plan, that decision ought not to have been interfered with.
