Can Resolution Professional/CoC invite enhanced Financial Offers from Prospective Resolution Applicants after having undertaken negotiations with H1 bidder i.e. despite final round of negotiation having concluded? – Ashdan Properties Pvt. Ltd. Vs. Dr. Mamta Binani & Committee of Creditors of Rolta India Ltd. – NCLT Mumbai Bench
Hon’ble NCLT Mumbai Bench held that:
(i) The commercial wisdom of the CoC has to be given paramount importance and that the CoC is well within their rights in trying to improve the Resolution Plan for the CIRP of the Corporate Debtor, if it is empowered to do so in terms of RFRP.
(ii) It is for the CoC to decide whether they want to approve a Resolution Plan or renegotiate with all the Resolution Applicants in order to obtain an enhanced offer for the CIRP of the Corporate Debtor.
(iii) CoC was well within its rights under the RFRP and Process Note thereunder to call for revised offers from all the Resolution Applicants. It is pertinent to note that the CoC’s constant bid to maximize the value of Corporate Debtor has yielded results in so far as the bid amount, despite final round of negotiation having concluded, was further enhanced by the applicant itself.