Can Adjudicating Authority defer the Resolution Plan approval application holding that it can be taken only after PUFE/avoidance transaction applications are decided? – Vinay Jain Vs. AVJ Developers (India) Pvt. Ltd. – NCLAT New Delhi
NCLAT held that:
(i) The legislative intent is very clear that avoidance application is not to affect the proceedings in the CIRP.
(ii) PUFE Applications are a different scheme of proceedings which has to be concluded to its logical act which shall have its consequences as contemplated in the statute.
(iii) The Adjudicating Authority is well within jurisdiction to consider both the Resolution Plan Approval Application as well as PUFE Application but the Adjudicating Authority erred in observing that the consideration of Plan Approval Application has to be deferred and can be taken only after PUFE Applications are decided.