In what circumstances and conditions, Adjudicating Authority can send back a Resolution Plan to CoC for carrying out changes? – Noble Marine Metals Co WLL Vs. Kotak Mahindra Bank Ltd. – NCLAT New Delhi
By the Impugned Order, the Adjudicating Authority remitted the Resolution Plan back to the CoC for reconsideration in accordance with law. Present is a case where reconsideration is being asked only with regard to clause which was included in the Resolution Plan relating to release of personal guarantee of the promoters which according to Committee of Creditors is not in accordance with law. The Adjudicating Authority has held that it is open to CoC to deliberate the Plan in accordance with law which directions cannot be faulted with more so when the Resolution Applicant himself consented before the Adjudicating Authority. NCLAT held that the Adjudicating Authority if finds on given set of facts that parameters under Section 30(2)(e) have not been kept in view, the Resolution Plan can be sent back to the CoC to review such plan after satisfying the parameters. The above is the only situation provided by Hon’ble Supreme Court where the plan can be sent back.
