The allocation in Resolution Plan to Creditors can be questioned when the plan value earmarked for them is less than the liquidation value, mere allocation of meagre amount cannot be a ground to question the resolution plan – Pani Logistics Through its sole proprietor, Kiran M. Jain Vs. Vikas G. Jain & Ors. – NCLAT New Delhi
NCLAT held that the allocation in the plan to the creditors can be questioned when the plan value earmarked for them is less than the liquidation value. Mere allocation of meagre amount cannot be a ground to question the resolution plan. It is also submitted by learned counsel for the Appellant that several cases against the ‘Rare Asset Reconstruction Ltd.’ are pending including Income Tax raid. There has been several material have come in to light which indicate that the Asset Reconstruction Company is a fraudulent company which is involved in several illegal activities. A fraudulent company should not be allowed to take over the Corporate Debtor.
NCLAT held that be that as it may. The law will take its own course. On these grounds, we are unable to interfere with the order approving the Resolution Plan.
