When Resolution Plan approved by CoC and pending before NCLT, without giving an opportunity to SRA, directions of NCLT to CoC to consider settlement proposal of Suspended Directors, cannot be sustained – One City Infrastructure Pvt. Ltd. Vs. Pratham Expofab Pvt. Ltd. and Ors. – NCLAT New Delhi
Hon’ble NCLAT held that:
(i) In the Application u/s 12A, which was filed by the Ex. Director, where a proposal was submitted for settlement, the Adjudicating Authority ought to have given an opportunity to SRA to submit a response to the Application.
(ii) Adjudicating Authority, ought to have allowed opportunity to SRA to respond to the Application, whose Resolution Plan has been approved by the CoC and which is pending consideration before the Adjudicating Authority. Without giving an opportunity to the Appellant, direction to the CoC to consider the Plan, cannot be sustained.
(iii) The Application for approval of Resolution Plan being pending consideration, it shall be open for the Adjudicating Authority to consider IA No.188 of 2024 along with its objection.
