Can CoC fix different eligibility criteria for Association of Allottees as compared to other Resolution Applicant? – Crown Business Park Tower A Buyers Association, Faridabad Vs. Atul Kansal and Ors. – NCLAT New Delhi
In this important judgment, Hon’ble NCLAT held that:
(i) Interference in the Resolution Plan by the Adjudicating Authority is permissible when the Resolution Plan violated the provisions of Section 30(2) and the Plan does not conform to requirements as referred to in Section 30(2).
(ii) Regulation 36A (4) of the CIRP Regulations provides that CoC is empowered to specify eligibility. The expression “specify the criteria for prospective resolution applicants”, cannot be read to mean that criteria for all prospective Resolution Applicants has to be same.
(iii) Criteria cannot be discriminatory but reasonable rational classification is not prohibited.
