Whether CoC can request to remit back the Resolution Plan pending before the Adjudicating Authority for approval? | Whether Unsuccessful Resolution Applicants/ ex-directors can challenge the decision of the CoC’s approval of the Resolution Plan submitted by SRA? – Vivek Mahendru and Anr. Vs. Ritu Rastogi RP of Eon Electric Ltd. and Ors. – NCLT Chandigarh Bench
Hon’ble NCLT Chandigarh Bench held that:
(i) Once it is approved by the CoC by the requisite voting share and the resolution plan has been submitted to the Adjudicating Authority, its hands are tied as it cannot make any change in the resolution plan, as it becomes a binding contract between the CoC and SRA.
(ii) The intention of the legislature is also clear from the Explanation to the Regulation 18(2) of the CIRP Regulations, 2016, which clarifies that CoC meeting(s) may be convened till the resolution plan is approved under Section 31(1) or order for liquidation is passed under Section 33 by the Adjudicating Authority and decide on matters, which do not affect the resolution plan submitted before the Adjudicating Authority.
(iii) The unsuccessful resolution applicants and ex-directors of the Corporate Debtor have no locus standi to maintain the application.