CoC decision for liquidation of the Corporate Debtor is non-justiciable and Adjudicating Authority had no power to reverse the commercial decision – Amit Bharana (Erstwhile Director of Apex Buildsys) Vs. Gian Chand Narang, Resolution Professional – NCLAT New Delhi
NCLAT held that the CoC was empowered to decide to liquidate the Corporate Debtor at any time before confirmation of the Resolution Plan, including any time before the preparation of Information Memorandum. (p34)
It also appears that when CoC noticed that both the Resolution Plans were not feasible and viable, and are being non-compliant which Section 30 of the Code read with Regulation 37 of CIRP Regulation thus. The same could not be considered the Resolution Plans per se within the Code and Regulations’ meaning framed thereunder. Consequently, the CoC decided to propose the liquidation of the Corporate Debtor and on voting the same was passed by a majority of 87.30% of voting share of the Members of CoC. Based on the above discussion, we are of the considered opinion that both the Appeals sans merit hence dismissed—no order as to costs. The interim order passed by this Bench stands vacated. IA also stands disposed of accordingly.(p35-36)