Noida Special Economic Zone Authority v. Manish Agarwal and Ors.

Valuation based on relevant material requires no interference | Dues not included in Resolution Plan are extinguished post approval | IBC provisions override SEZ Act and Rules – Noida Special Economic Zone Authority Vs. Manish Agarwal and Ors. – Supreme Court

/ 16 minutes of reading

In this judgment, the Hon’ble Supreme Court clarifies following issues:

A. Valuation does not call for any interference if it is based on relevant material on record.
B. All the dues is not the part of the Resolution Plan shall stand extinguished and no proceedings could be pressed into service or continues.
C. Claims pertaining to the transfer fees, etc. were not to be interfered with by courts or tribunals as the same stood related to the commercial wisdom of the CoC.
D. Does provision of IBC override Special Economic Zone Act and Rules?

Valuation based on relevant material requires no interference | Dues not included in Resolution Plan are extinguished post approval | IBC provisions override SEZ Act and Rules – Noida Special Economic Zone Authority Vs. Manish Agarwal and Ors. – Supreme Court Read Post »

Provisions of IBC to override Special Economic Zone Act and Rules – Noida Special Economic Zone Authority, Ministry of Commerce & Industry Vs. Mr. Manish Agarwal RP of Shree Bhomika International Ltd- NCLAT New Delhi

/ 30 minutes of reading

NCLAT holds that it is well settled that Insolvency and Bankruptcy Code overrides other law and under Section 31 of the Code, the Resolution Plan approved by the CoC and meeting the requirements under Section 30(2) has to be approved by the Adjudicating Authority. Commercial Wisdom of the CoC with respect to viability and financial decision taken while evaluating the Resolution Plan has to prevail, unless the Plan approved by the CoC is in conflict with any provision of the law and the distribution mechanisation suppressed the interest of the stakeholders besides taking care of the maximisation of the value of the assets of the corporate debtor, judicial intervention would not be warranted. Additionally, in the instant case, the Resolution Plan has already been implemented a year ago and we do not wish to set the clock back.

Provisions of IBC to override Special Economic Zone Act and Rules – Noida Special Economic Zone Authority, Ministry of Commerce & Industry Vs. Mr. Manish Agarwal RP of Shree Bhomika International Ltd- NCLAT New Delhi Read Post »

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