Objection regarding eligibility of Resolution Applicant can very well be considered by the Adjudicating Authority while considering the approval of the Resolution Plan | Negotiations after Challenge Process are fully permissible | CoC is well versed with the financials of all Resolution Applicants – Abhijit Realtors and Infraventures Pvt. Ltd. and Anr. Vs. Rohit Mehra (RP of Reliance Broadcast Network Ltd.) and Anr. – NCLAT New Delhi
The Hon’ble NCLAT held that:
(i) When no objection was raised to inclusion of Resolution Applicants in the provisional list and the final list, the Resolution Applicants are to be treated eligible to participate in the process and in the process, no objection can be taken regarding eligibility. However, when the Resolution Plan came for approval before the Adjudicating Authority, in a case where it is found that Resolution Applicant is not eligible and does not fulfil any requirement of eligibility, the Adjudicating Authority in no manner is deprived from considering the said question regarding eligibility.
(ii) The CoC which consists of financial institutions is well versed with the financials of all Resolution Applicants. The CoC under whose direction the Resolution Professional has issued Invitation for Expression of Interest is well aware of the clauses and eligibility provided.