Base Resolution Plan under Pre-Packaged Insolvency Resolution Process (PPIRP) can be submitted by a Corporate Applicant individually or jointly with any other person | There is no occasion for consideration of Base Resolution Plan at the time of consideration of application under Section 54C of IBC for admission or rejection – Garodia Chemicals Ltd. – NCLAT New Delhi

In the present case, the Adjudicating Authority has rejected 54C Application after entering into the merits of the Base Resolution Plan, which is not contemplated by statutory Scheme.

Hon’ble NCLAT held that:
(i) Base Resolution Plan has been given no finality, nor it is a Resolution Plan, which ultimately is required to be approved. Base Resolution Plan can be rejected by the CoC on valid reasons and fresh Resolution Applicants can be invited and approval of the Resolution Plan by Adjudicating Authority arises only after approval of Plan by the CoC under Section 54K.
(ii) The statutory Scheme, thus, clearly indicates that there is no occasion for consideration of Base Resolution Plan at the time of consideration of Application under Section 54C for admission or rejection.
(iii) Base Resolution Plan can very well be submitted by a Corporate Applicant individually or jointly with any other person.

Base Resolution Plan under Pre-Packaged Insolvency Resolution Process (PPIRP) can be submitted by a Corporate Applicant individually or jointly with any other person | There is no occasion for consideration of Base Resolution Plan at the time of consideration of application under Section 54C of IBC for admission or rejection – Garodia Chemicals Ltd. – NCLAT New Delhi Read Post »