Whether extension of time for payment in approved Resolution Plan is the modification of the Resolution Plan | Whether NCLT/NCLAT has jurisdiction to grant extension of timeline without concurrence of the Committee of Creditors (CoC) – Ashok Dattatray Atre and Ors. Vs. State Bank of India and Ors. – NCLAT New Delhi

Hon’ble NCLAT held that:

(i) Extension of time in the payment as per Resolution Plan is not a modification of the Resolution Plan, which jurisdiction can be exercised by the Adjudicating Authority/ Appellate Tribunal and extension of time for payment cannot be treated to be withdrawal of the Resolution Plan or modification of the Resolution Plan.
(ii) The extension of time in payment is not the modification of the Resolution Plan.
(iii) Adjudicating Authority has jurisdiction to grant extension of timeline in making the payment in a Resolution Plan.
(iv) For extension of timeline it is not necessary that CoC should express its concurrence, only then the Adjudicating Authority can exercise its jurisdiction.
(v) The jurisdiction is there with the Adjudicating Authority in appropriate case. Granting extension of time in payment as per Resolution Plan for implementation of the Resolution Plan, appropriate jurisdiction is always vested with the Adjudicating Authority to pass appropriate order.

Whether extension of time for payment in approved Resolution Plan is the modification of the Resolution Plan | Whether NCLT/NCLAT has jurisdiction to grant extension of timeline without concurrence of the Committee of Creditors (CoC) – Ashok Dattatray Atre and Ors. Vs. State Bank of India and Ors. – NCLAT New Delhi Read Post »