Whether after approval of the Resolution Plan by the CoC and pending approval, the Adjudicating Authority can direct the CoC to convene a meeting and place the promoter’s settlement proposal as offered for consideration, decision and voting on that within a certain period? – Union Bank of India on behalf of the CoC of Dewan Housing Finance Corporation Ltd. Vs. Mr. Kapil Wadhawan – NCLAT New Delhi
In the instant case, after Approval of the Resolution Plan by the CoC, the application was pending before the Adjudicating Authority under Section 31 of the Code, for Approval of the resolution plan the Adjudicating Authority accordingly while disposing of the Interim Application directed the CoC to consider the IInd Settlement Proposal of the Promoter, within ten days and take an appropriate decision. NCLAT set aside the order holding that considering the ratio of the Judgement of the Hon’ble Supreme Court in the case of Ebix Singapore (supra), “there was no scope for negotiations between the parties once the CoC has approved the Resolution Plan. Thus, contractual principles and common law remedies, which do not find a rope in the wording or the intent of the IBC, cannot be imported in the intervening period between the acceptance of the CoC Approved Resolution Plan and the Approval by the Adjudicating Authority.
