Whether after approval of Resolution Plan by CoC u/s 30 of IBC and filing an application before NCLT for its approval, any Settlement Proposal under Section 12A of IBC can be entertained deferring consideration of approval of Resolution Plan by the NCLT? – Hem Singh Bharana Vs. M/s Pawan Doot Estate Pvt. Ltd. – NCLAT New Delhi
NCLAT held that Regulation making Authority was well aware about the entire process under the Code, including approval of the Plan by the CoC and filing of the Application before the Adjudicating Authority for approval of the Resolution Plan. Had it intended that 12A Application can be entertained even after Resolution Plan is approved by the CoC, the proviso would not have confined to issue invitation for Expression of Interest, rather, it could have been conveniently mentioned that after approval of Resolution Plan Applicant should justify withdrawal. It was never intended that after approval of Resolution Plan by CoC, Application under Section 12A can be entertained. Hence, the Regulation is framed in that manner.
