Adjudicating Authority suo moto cannot direct the CoC to consider the new resolution plan & re-consider the already approved resolution plan- Chhatisgarh Distilleries Ltd. Vs. Dushyant Dave – NCLAT
NCLAT upheld NCLT’s decision and held that when the Resolution Plan is filed before the Adjudicating Authority then the Authority has to satisfy that the Resolution Plan approved by the Committee of Creditor fulfills the requirements as specified in Sub-Section 2 of Section 30. However the Adjudicating Authority cannot direct the CoC to consider the second Resolution plan submitted before the Authority although the second Resolution Applicant is ready to invest more amount in comparison to first Resolution Applicant. Learned Adjudicating Authority has rightly held that Adjudicating Authority cannot suomotu direct the CoC to consider new resolution plan and reconsider already approved Resolution plan.
